Scottish rents hit all-time high during buoyant second quarter of 2021

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11th August 2021

You can read the Citylets report from the fourth quarter of 2021 here.

The latest report from Citylets sees a marked resurgence in certain areas of the Scottish rental market in the second quarter of 2021. As lockdown restrictions eased, and students regained confidence in seeking term-time accommodation ahead of returning to university, the Scottish national average rent rose to an all-time high of £883 per month.

If we compare Scotland’s major cities, Edinburgh began to bounce back from the decline of the last quarter, to record a year-on-year decrease of 0.6% in average rent, taking it to £1,115. Glasgow once again saw increasing demand, pushing average rental rates 8.9% higher year on year, to £882.

Properties in commuting distance of main cities continued to post the strongest growth, with West Lothian recording a 13.2% increase in rental price, while limited supply of properties affected the growth of areas including the Borders.

Larger rental properties continued to be in high demand, although there were regional variations on this trend. Smaller, one- and two-bedroom properties were less popular, which is consistent with the consensus that tenants have increasingly sought more living space to accommodate changing lifestyles, such as home working.

The average time to let stood at 34 days across Scotland, six days quicker than this time last year.

The rental market remains resilient, with positive signs of recovery from the setbacks of the past 18 months.

Edinburgh rental market

Average rent in Edinburgh

According to Citylets, the Edinburgh market continued to see some challenges, with a greater supply of smaller one- and two-bedroom properties. However, larger three- and four-bedroom properties recorded positive growth at 3% and 1.8% respectively, in strong contrast to the previous quarter. Many agents are now predicting a return to pre-pandemic levels this year, assuming no further changes.

Time to let in Edinburgh

The average time to let in the second quarter of 2021 was 38 days, slightly above the national average of 34 days, but a faster time to let than the previous quarter. Four-bedroom properties were let the fastest, averaging at 33 days.

Best rental yields in Edinburgh

Combining CityLets and ESPC data, we can reveal that three-bedroom homes in EH8 produced the best rental yield at 5.8%, closely followed by one-bedroom properties in EH5 at 5.6%. EH11 and EH3 also performed well, with the former’s three-bedroom properties and the latter’s one-bedroom properties both producing yields of 5.4%.

Nicky Lloyd, Head of ESPC Lettings, said: “As expected, we are seeing a return to demand for larger properties in areas traditionally popular with students, this is consistent with the pattern that we’re seeing in the top-performing areas for rental yields. These larger properties, in areas close to university campuses and with easy access to the city centre are proving popular. There is also still strong demand for smaller properties in the city centre, and in areas that offer easy access to both city and coastline, such as EH5.

“While average rents have decreased this quarter, they are actually up from the decline we saw in 2020, with the market making a strong rebound year-on-year. Edinburgh’s average rent is also up 45% in ten years, demonstrating how strong the potential is for long-term buy-to-let investors. As restrictions ease and the city opens up further, we expect to see more of Edinburgh’s famous buzz return to the capital, with the potential for stronger demand across the city’s rental market.”

Get in touch with Nicky to discuss the Edinburgh rental market.

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West Lothian rental market

Average rent in West Lothian

According to Citylets data, the average rent in West Lothian increased 13.2% year on year between April and June, to £736. One-bedroom properties showed the biggest increase at 8.9%, which may be attributed to students feeling confident in their physical return to university and seeking affordable properties within commuting distance of the major cities.

Time to let in West Lothian

In the second quarter of 2021, the average time to let in West Lothian was 18 days, much quicker than the national average of 34 days, although one day slower than that of the first quarter. One-bedroom properties let the fastest at an average of just 15 days, with 25% of them let within a week.

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Glasgow rental market

Average rent in Glasgow

According to Citylets data, the average rent in Glasgow continued to rise, increasing 8.9% year-on-year to £882 as demand outstripped supply. Glasgow alone recorded growth across all property types, from one- to four-bedroom properties, however the upper end and corporate segments of the market didn’t perform as well. Three-bedroom flats posted the largest increase, at 10.9% year-on-year, which ties into students returning to the city ahead of resuming studies.

Time to let

The average time to let was 30 days, four days quicker than the Scottish average and eight days quicker than 2020. One-bedroom and four-bedroom properties proved the most popular, with both types taking 26 days to let. 38% of four-bedroom properties were let within a week.

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Find out more

Read the full Citylets report.

If you’re interested in finding out more about the Edinburgh buy-to-let market or if you’re a landlord looking for assistance with managing and marketing your properties, get in touch with ESPC Lettings on landlord@espc.com or 0131 253 2487.

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