Rental demand in Scotland now at an all-time high
Letting agents and landlords operating in Scotland are enjoying some of the best conditions ever experienced, according to new data, which suggests that the market north of the border is now coming in line with the rest of the UK.
For some time, home ownership levels in the UK have been dropping considerably as more and more people opt to become tenants instead, thanks to the convenience and freedom this offers, and in Scotland, this is now also becoming the case, as tenant demand hit an all-time high in 2016, data shows.
According to the latest index from Citylets, the past year has seen new highs hit for rental prices in a number of different cities across Scotland as demand pushes asking prices ever higher nationwide.
For example, in Scotland's two largest cities, Glasgow and Edinburgh, rental prices hit peaks in 2016 thanks to annual rises of 3.9 per cent and 3.6 per cent respectively.
It was a similar story in Dundee and West Lothian, with both key areas having experienced a rise in rental prices that trended near to five per cent when compared to the end of 2015.
Aberdeen was the only Scottish city that experienced a fall in rental prices throughout the year, with the drop off in the oil industry having left the city with a 15.4 per cent fall in rental prices over the course of the past year.
However, Fiona Hindshaw of Clyde Property said that the general consensus was that the market experienced new highs in 2016 and a real trend towards strength for some time to come.
"Positive trends include record low interest rates leading to further buy-to-let investment and as rental prices continue to rise with increasing tenant demand, fuelled in part by a housing shortage, we also see this shortage fuel strong capital growth, reaffirming property as a sound investment for the future," she said.