19
Oct
2018

Weaker growth in Scotland due to stronger supply and weaker demand

Rental growth in Scotland increased by 0.6% in the 12 months to September 2018, up from 0.5% in August 2018, according to the latest official data from the Office for National Statistics. The historic weaker growth since mid-2016 may be due to stronger supply and weaker demand in Scotland, report ARLA Propertymark in their Private Rented Sector Report for July and August 2018.

The ONS data shows rents in Scotland put in the worst performance in the year to the end of September. In contrast, tenants in Wales saw their rents rise one per cent, while those in England were up 0.9 per cent.

On average, UK rents were up 0.9 per cent, an annual rate of increase that remained unchanged from August. However, an independent rent report from tenant referencing firm Homelet also reported on rents in Scotland.

The data showed tenants are spending an average £663 a month on rents in Scotland -  down £1 since August 2018 and up £36 a month from September 2017. The research also found rents in Scotland are rising at a much faster rate than that reported by the ONS - 5.6 per cent year-on-year compared with 0.6 per cent and that they decreased by 0.2 per cent between August and September 2018.

In comparison, average UK monthly rents were £943, down £4 from £947 in August, but up £16 since September 2017. The monthly change was 0.4 per cent and the average rate of growth was 1.7 per cent. Rents in London are more than double those in Scotland. The average paid by tenants in the capital is £1,640 a month.

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