Expert issues warning over further rent hikes

Figures from the Landbay Rental Index show that it now costs an average of £454 per month to rent a home in Renfrewshire – up by one per cent in the past 12 months.

In neighbouring East Renfrewshire, the average monthly rent is £554 – two per cent higher than last year.

Both areas have seen a bigger rise in rents than the national average of less than one per cent.

Across Scotland as a whole, the average monthly rent stands at £734.
Two-bedroom rental properties have seen the biggest increase in price in East Renfrewshire, with a rise of nearly four per cent in the past year taking the average to £546 per month.

Renfrewshire has also seen a rise in the cost of renting a two-bedroom home, with an increase of almost three per cent in the past year.

The cost of renting a three-bedroom home in East Renfrewshire has increased by 1.89 per cent to an average of £924, with a rise of 1.38 per cent in Renfrewshire pushing average costs to £640.

In contrast to the trend, rents for one-bedroom properties have decreased by 0.16 per cent in East Renfrewshire and 1.47 per cent in Renfrewshire.

John Goodall, CEO and co-founder of Landbay, said: “Rental growth across the UK is stuttering. However, there are signs of a stronger demand for rental properties.

“On the face of it, landlords have had a tough time in the past two years from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs.

“With an interest rate rise just announced, many landlords that are stuck on variable rates or those looking to refinance will likely feel the impact.

“Therefore, tenants could be hit by rent rises in the near future as landlords look to recover some of the cost.”

The area in Scotland with the biggest increase in rental prices was Stirling, at 2.68 per cent, with Inverclyde and Edinburgh just behind at 2.59 per cent and 2.51 per cent respectively.