Scottish average rents increasing by £1,152 per year
Rents are rising in Scotland faster than in other parts of Britain.
Last updated 15th May 2023
The average monthly rents in Scotland paid on newly-let homes are rising at one of the fastest rates, according to a property agent's lettings index.
Figures for April 2023 show an increase of 12.8% on average, which is up £96 on a year before, at a new total figure of £848 extra.
Across Britain the figure is £125 or 11.1% which means an extra £1,5000 being paid per year.
Average rents paid for newly-let homes reached a new high of £1,249 per month in April 2023, according to Hamptons, whose lettings index has been running for just over a decade.
It said rental growth has pushed the average monthly rent on newly-let properties outside London over the £1,000 mark, at £1,002.
This came less than three years (34 months) after the average rent for the whole of Britain, including London, passed the same milestone in July 2020.
Soaring rents since Covid
Aneisha Beveridge, head of research at Hamptons, said: "It was back in July 2020 that the average rent across the whole of Great Britain (including London) last passed the £1,000 pcm (per calendar month) mark.
"But just 34 months later, soaring rents since Covid have meant that the average rent in the regions outside of London has passed that same milestone."
She added: "With rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area.
"While anyone choosing to sit tight tends to face smaller rental increases than those moving home, they are not immune.
"Affordability constraints will likely hit the brakes on rental growth at some point this year, however, it's unlikely to slow considerably due to the number of landlords looking to pass on their rising costs."
Hamptons' lettings index uses data from the Countrywide Group to track changes to the cost of renting.
The index is based on 90,000 homes let and managed by Countrywide each year. It is based on rental prices paid rather than advertised rents.
Here are average monthly rents on newly-let properties in April 2023 and the annual increase in percentage and cash terms, according to Hamptons:
- Greater London, £2,210, 17.2%, £324
- East of England, £1,169, 6.2%, £68
- South East, £1,326, 8.1%, £99
- South West, £1,082, 4.0%, £41
- Midlands, £880, 9.2%, £75
- North of England, £836, 9.8%, £74
- Wales, £766, 3.7%, £27
- Scotland, £848, 12.8%, £96
- Britain, £1,249, 11.1%, £125
- Britain (excluding London), £1,002, 7.8%, £72
The cost of living crisis is affecting many:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.