Average rental prices in Scotland are rising at their fastest rate on record.
Private renting in the country were 3.7 per cent higher in July 2022, than they were just 12 months earlier. These figures were published by the Office of National Statistics (ONS).
That’s the highest year-on-year increase of any month since comparable records began in 2012. In the two years leading up to the pandemic, year-on-year increases were rising by an average of 0.7 per cent.
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The price rise news comes as the average worker is seeing their regular pay shrinking in value. Real term regular pay fell by 3.0 per cent in June for workers across Great Britain, according to separate figures from the ONS.
The East Midlands has seen the largest year-on-year rent increases in the UK (4.3 per cent) followed by the East of England (4.1 per cent), the North West (4.0 per cent), and the South West (4.0 per cent).
Private rents in Scotland have increased by 8.0 per cent since January 2015. That’s compared to 14.6 per cent in England, and 8.7 per cent in Wales.
In the last five years, private rental prices have increased 7.1 percentage points in Scotland, and 5.6 percentage points since the start of the pandemic.
Earlier this month, Edinburgh Live reported where exactly in the capital property prices were soaring the most. According to ESPC's latest data, in Edinburgh city centre, the average property selling prices rose 6.5% to £312,086.
Following a period of high demand for properties in the past year, two-bedroom flats and three-bedroom houses continue to be particularly popular with Edinburgh buyers. ESPC said: "While they are showing slight signs of slowing compared to earlier quarters as the market returns to more ‘normal’ levels after the pandemic."
Two-bedroom flats in Edinburgh’s New Town and West End areas sold for £468,181, a 0.8% annual rise, this was followed by Morningside and Merchiston where two-bedroom flats sold for an average of £383,970 – an increase of 17.6%.
In Leith, one-bedroom flats sold for an average £228,559, an increase of a whopping 43.5%.
Meanwhile, other areas are starting to see a 'cool off' in soaring prices, with ESPC saying: "In previous quarters there was high demand for three-bedroom houses in Cramond, Barnton and Cammo but we are seeing signs this is starting to cool off as the average price is now at £377,884, a decline of 5.2% annually."
Edinburgh has continued to be a desirable place to live, with buyers paying 108.9% over Home Report value, a rise of 3.9% annually.
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