Commercial property investment in Lothian pays off as private rents continue to rise
The Lothian area has seen the highest increase in private rents for two-bedroom properties between 2010 and 2016, with average monthly rents rising by 25.1% over the last six years, according to the latest figures released by Scotland’s chief statistician.
Average rents in the Greater Glasgow area have risen by a cumulative 23.5%, whilst rents in Aberdeen and Shire have increased by 17.4% over the full 2010 to 2016 period, despite rents in this area falling by 13.7% on an annual basis between 2015 and 2016.
For the remaining areas of Scotland, cumulative increases over the last six years have ranged from 11.4% (Highlands and Islands) to 1.2% (West Dunbartonshire), with a decrease of 0.2% being seen in the Ayrshires.
These regional trends combine to show a 14.8% cumulative increase in average rents from 2010 to 2016 for two-bedroom properties at the Scotland level.
For the year to end-September 2016, Lothian had the highest average monthly rents for two-bedroom properties across Scotland (£831). Other areas with high rents included Aberdeen and Shire (£754), Greater Glasgow (£696), and East Dunbartonshire (£636).
Areas with the lowest average rents for 2 bedroom properties included Dumfries and Galloway (£447),Scottish Borders (£452), and the Ayrshires (£463).
Figures on changes to rents between 2010 and 2016 should be considered in the context of the cumulative increase in the UK Consumer Price Index of 12.6% from Sept-10 to Sept-16. Between Sept-15 and Sept-16, the UK Consumer Price Index increased by 1.0%.