What was the private rental market in Scotland like in Q4 2024?

The latest Citylets report is now available, highlighting how the private rental sector in Scotland performed during the final quarter of 2024.

In Q4 2024, the Scottish private rental market mostly followed seasonal trends, marking a return to pre-COVID norms. However, political developments around housing policy took centre stage.

The Housing (Scotland) Bill passed its first stage in parliament, introducing plans to cap rent increases between tenancies to the Consumer Price Index (CPI) plus 1% in designated Rent Controlled Areas (RCAs). This policy was polarizing: some investors appreciated the stability, but critics argued it either went too far or not far enough.

Landlords expressed concerns that rent caps disincentivise upgrading properties, especially when energy efficiency standards (EPC regulations) require significant investments. Deciding where RCAs are needed will fall to local councils. This process, like earlier rent control policies, is expected to face delays and challenges.

Amid Scotland’s housing emergency and an urgent demand for more landlords to enter the market, the Scottish Government’s decision to increase Additional Dwelling Supplement (ADS) from 6% to 8% came as a disappointment to many in the sector. As ESPC’s CEO Paul Hilton expressed, this will perpetuate the cycle of limited supply in the private rental market, further exacerbating the overall property shortage, which is a key driver of the national housing crisis.

The latest Scottish Household Survey (2023), also published in Q4 2024, highlighted a decline in private rental sector (PRS) households, from 360,000 in 2017 to 330,000 in 2023. Combined with a shrinking social housing sector and rising reliance on family homes (coined the "Hotel of Mum and Dad"), concerns grow about the PRS’s ability to meet demand throughout Scotland.

In short, Scotland’s rental market faces a mix of regulatory uncertainty, declining rental stock, and questions about the effectiveness of new housing policies.

During this quarter, rents throughout Scotland continued to rise in single digits when comparing year on year. However, the average rent dropped once again, to £1,165, down from £1,195 in Q3 and £1,207 in Q2.

Across Scotland, as seen in Q1, Q2 and Q3 of 2024, one-bedroom properties experienced the highest increase in rates, rising 7.5% year-on-year, meaning the average rent per calendar month for this property type rose to £856. In the last five years, three-bedroom properties have achieved the biggest increases in rental rates, rising 52.9% overall with a current average rental rate of £1,440 per month.

The rental market in Edinburgh

Average rents in Edinburgh

The average rent in the capital remained consistent when comparing the final quarter of 2024 with the previous year. The average cost of renting a home in Edinburgh was £1,501 per calendar month, which is a very marginal decrease of 0.1%, and largely represents some much-needed stability in the market.

This decrease in rental rates was exclusive to 3-bedroom and 4-bedroom properties in the capital, both falling 2.4% compared to Q4 of 2023. The biggest increase came in 2-bedroom properties, albeit just 2.2%, which resulted in an average rental cost of £1,444. Rental rates on 1-bedroom properties in the capital saw a small increase also, up 1.9% to an average of £1,072.

Time to let in Edinburgh

In encouraging news for tenants, properties in Edinburgh let in an average of 22 days, which is 4 days slower than 2023.

In keeping with the trend seen for the entire year, one-bedroom properties in Edinburgh once again performed well in Q4, taking only 16 days on average to let. 25% of one-bedroom properties were let within a week, and 86% were filled within one month.

There was a noticeable shift in the average time to let both 2-bedroom and 4-bedroom properties in the capital compared to Q3. 2-bedroom properties took just 18 days to let in Q3, while in Q4 in took 23 days. For 4-bedroom homes, Q4 was 10 days slower than Q3, with average time to let at 40 days and 30 days respectively.

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The rental market in Glasgow

Average rents in Glasgow

Looking at the data from Citylets, Glasgow continues to see a slight decrease in average rents compared to 2023, decreasing by 1.9% year-on-year to an average of £1,157 per calendar month.

Rent change compared to the previous year on 2-bedroom and 3-bedroom properties was notable down, at a rate of -3% and -3.1% respectively. 4-bedroom homes were the best performers, albeit with a small increase of just 0.4% year-on-year, resulting in a monthly average rental price of £1,968.

According to long-term data, 3-bedroom properties have seen the highest increase (46.3%) when comparing to five years ago. Looking at rent changes over a 10-year period, it’s no surprise that one-bedroom properties saw the biggest increase (75.4%) as the city has grown in popularity with young professionals, and clearly demonstrates that there are opportunities within the city for rental investors looking to make a long-term commitment to the sector.

Time to let in Glasgow

The average time to let in Glasgow was 23 days, which is 5 days longer than the same period in 2023. Overall, 21% of rental properties found new tenants within a week, and 71% were let within a month.

As with Q3 of 2024, 1-bedroom properties in the city were let quickest, with an average time of 18 days. Taking an average time of 50 days to let, 4-bedroom properties took the longest. Also worth noting, 29% of one-bedroom properties were let within a week, and 81% were let within a month.

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The rental market in West Lothian

Average rents in West Lothian

Looking at the data for West Lothian, we can see that the average rental rate for properties in the region grew 1.7% compared to Q4 2023, to a figure of £938 per calendar month. Despite this slight increase year-on-year, Q4 average rent of £938 is down compared to Q3, which was £1,017.

Two-bedroom properties experienced the largest rise in rent in the area, increasing 3.3% to an average of £855. The biggest rise in rent change over both a 5-year and 10-year period was for 3-bedroom properties, highlighting the demand for rental homes for families in the region.

Time to let in West Lothian

Rental properties in the region let in an average time of 21 days, a figure that was 3 days slower than Q4 of 2023. 18% of all available West Lothian rental properties were let within a week, and 80% were let within a month. Performing best in terms of time to let over the course of a week, 21% of 1-bedroom properties let with 7 days. With an average time to let of just 15 days, and 94% being let within a month, 2-bedroom properties performed well in West Lothian during Q4 of 2024.

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Find out more 

Read the full Citylets report.

Search houses and flats to rent in Edinburgh.

ESPC Lettings

If you’re interested in entering the buy-to-let market or are a landlord looking for advice, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.

Get in touch with the team today on landlord@espc.com or 0131 253 2847.