Main Findings for 2 Bedroom Properties
From 2016 to 2017, 15 out of 18 areas have seen increases in rent for 2 bedroom properties. These ranged from 0.7% in the Ayrshires to 6.9% in Lothian and 7.0% in Greater Glasgow. The areas which showed decreases in average rents for 2 bedroom properties between 2016 and 2017 were Aberdeen and Shire (-9.6%), Argyll and Bute (-1.7%) and West Dunbartonshire (-0.5%). This is the third consecutive annual decrease for Aberdeen and Shire, which is likely to reflect decreased demand for rental properties following the downturn in the oil industry. See Chart 4 and Table 2 below.
These regional trends combine to show an increase of 4.4% in average rents between 2016 and 2017 for 2 bedroom properties, at the Scotland level, from £616 to £643. This compares to an increase in the UK Consumer Price Index of 3.0% in the year to Sept-17.
Over the 7 year period from 2010 to 2017, the Lothian area of the country has seen the highest increase in private rents for 2 bedroom properties, with average monthly rents rising from £665 per month to £888, or 33.7% (cumulative increase over 7 years). Average rents in the Greater Glasgow area have risen by a cumulative 32.1% over the last 7 years (from £564 to £745).
For the remaining areas of Scotland, cumulative increases over the last 7 years have ranged from 0.7% in West Dunbartonshire to 14.9% in Fife.
These regional trends combine to show a 19.9% cumulative increase in average rents from 2010 to 2017 for 2 bedroom properties at the Scotland level, from £536 to £643.
Figures on changes to rents over the period from 2010 to 2017 should be considered in the context of the cumulative increase in the UK Consumer Price Index of 15.9% from Sept-10 to Sept-17. Over the 7 year period, average rents for 2 bedroom properties in the Lothian and Greater Glasgow areas have risen faster than the consumer price index, whilst changes in average rents for 2 bedroom properties in other areas of the country have been below the rise in the consumer price index.
Chart 4: Cumulative % Change In Average (mean) Rents from 2010 to 2017 (year to end-Sept), by Broad Rental Market Area - 2-Bedroom Properties
Table 2: 2 Bedroom Properties - Average (mean) Monthly Rents (£): Cumulative Changes 2010 to 2017, by Broad Rental Market Area
|2010||2016||2017||2010 to 2017 change||2016 to 2017 change|
|Highland and Islands||503||561||575||14.2%||2.5%|
|Dundee and Angus||497||546||555||11.6%||1.6%|
|Perth and Kinross||506||540||549||8.4%||1.7%|
|Renfrewshire / Inverclyde||473||494||508||7.3%||2.8%|
|Aberdeen and Shire||643||754||682||6.1%||-9.6%|
|Dumfries and Galloway||435||447||453||4.2%||1.5%|
|Argyll and Bute||503||525||516||2.6%||-1.7%|
See Reference Tables ( Tables 7 to 14) for a more detailed breakdown of quartile and average rents for each year.
For the year to end-September 2017, Lothian had the highest average monthly rents for 2 bedroom properties across Scotland (£888). Other areas with higher rents included Greater Glasgow (£745), and Aberdeen and Shire (£682). Areas with the lowest average rents for 2 bedroom properties were Dumfries and Galloway (£453) and Scottish Borders (£459). See Chart 5 below.
Chart 5: Average (mean) Monthly Rents from 2017 (year to end-Sept), by Broad Rental Market Area - 2-Bedroom Properties