16th
Feb 2024
A property portal’s research has backed up its claim that Scotland’s rent controls have caused higher rents.
Its research team has studied Scotland rents since September 2022 when the Scottish Parliament introduced rents caps on yearly rent rises in existing tenancies.
Senior property researcher Izabella Lubowiecka said on the website: “While intended to reduce cost-of-living pressures for renters, it means landlords are now going higher at the start of a tenancy to cover their costs and the limited increases during the contract. This leads to Scotland having the highest level of annual rental inflation in the UK at 11.1 per cent. The average monthly rent in Scotland stands at £790, £82 more than a year ago.”
Despite being a lower rental growth than a year ago the property portal believes that Scotland’s rent prices this year will be higher than the rest of the UK.
Prominent cities including Edinburgh and Glasgow have the largest rent rises, whilst most rural areas have recorded annual rental growth below 6 per cent.
The portal says across the whole of the UK average annual rental increases stand at 8.3 per cent in 2023 costing renters an additional £1,100. UK tenants are now paying an average monthly rent of £1,200.
The portal says rental growth, which has fallen to single figures, shows that the peak has been passed after virtually two years of 10 per cent and higher increases, and apparently London’s rental prices growth has reached an affordability ceiling.
Lubowiecka writes: “We expect a further slowdown in rental growth in 2024 as worsening affordability keeps demand in check.”.
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