Rent rises in Scotland for private tenants have hardly changed for the past three years, according to the latest figures. Buy to let rents have gone up 1.2% in that time, data from the Office of National Statistics (ONS) shows.
In June 2015, the Index of Private Housing Rental Prices stood at 106.7 - having risen from a base of 100 in January 2011. In June 2018, the index showed buy to let costs had increased to 107.9 for private renters. In the year to June 30, the rise in Scotland was just 0.6%, compared to a UK average of 1%, the highest annual increase being in Wales at 1.1%. In fact, rent rises in Scotland have stayed at 0.6% since May, which is probably due to a low demand for an oversupply of properties, while demand from tenants is stronger in Wales. A 0.6% increase is a rent rise of just 60p for each £100 of rent. For instance, a tenant paying a monthly rent of £500 in June 2017 now pays on average a rent of £503 a month.
The ONS says little has changed in the market recently - and this reflects a gradual downturn in the rate of rent increases since the end of 2015. “This slowdown in the growth in private rental prices in Great Britain is driven mainly by a slowdown in London over the same period,” said the ONS report. “Between January 2011 and June 2018, private rental prices in Great Britain increased by 15.9%. This was strongly driven by growth in private rents in London. When London is excluded from these figures, private rents increased by 12.5% over the same period.” The ONS collects information relating to 450,000 private rented homes across the UK for the index.
To read the full ONW statistical bulletin: Index of Private Housing Rental Prices, Great Britain: June 2018 click here.