## Rent Growth in Scotland Aligns with Inflation

The Scottish private rented sector has experienced a period of stabilisation, with average rents increasing at a rate consistent with inflation over the past year. According to DJ Alexander’s analysis of the latest data, rents for two-bedroom properties rose by £28 per month to £921 in the year ending September 2025, marking a 3.1% increase that matches the inflation rate for the same period.

One-bedroom homes also saw a £28 monthly increase, representing a 4% rise to an average rent of £738. Meanwhile, three-bedroom properties experienced a more modest uplift of 1.6%, increasing by £18 to £1,154. Notably, rents for four-bedroom homes decreased by 1.5%, falling by £26 to £1,767.

## Impact of Rent Controls on Market Dynamics

David Alexander, CEO of DJ Alexander, highlighted the effects of rent controls introduced in September 2022, stating, “The introduction of rent controls distorted the market and resulted in rapid increases in rents as the legislation reduced the volume of properties available.” He explained that the reduced supply led to increased demand, which in turn pushed rents higher.

Between September 2022 and September 2023, rents across all property sizes experienced double-digit percentage increases, even as inflation stood at 9%. Mr Alexander noted, “These figures highlight just how effective the market has been in meeting demand in the private rented sector over the last year. As more homes have become available then the average rents have stabilised and reflect an annual rate in line with the historic trend rather than the blip caused by the introduction of rent controls.”

## Regional Variations in Rent Levels

There remain significant regional disparities in rent levels across Scotland. The Lothian area recorded the highest average rent for a two-bedroom home at £1,356 per month, whereas Dumfries and Galloway had the lowest, with an average of £569.

Since 2010, only four regions—Lothian, Greater Glasgow, Dundee and Angus, and Forth Valley—have seen rent increases keep pace with inflation, each recording cumulative growth at or above 54.7%. In contrast, rents in the other fourteen regions have fallen in real terms over the same period.

## Long-Term Rent Trends and Implications for Landlords

Overall, average rents across Scotland have risen by 67% between 2010 and 2025, which is 12% above the cumulative inflation rate. This equates to an average annual growth rate of less than 1%. Mr Alexander commented on the modest nature of recent rent increases, even in high-demand areas such as Edinburgh and Glasgow, stating, “In order to retain reasonable rent increases, it is essential to continue a strong supply of properties through the encouragement of investors and landlords.”

For landlords and letting agents, this underscores the importance of maintaining and expanding the rental property supply to meet demand and support sustainable rent levels. The market’s recent stabilisation suggests that with adequate supply, rent growth can remain moderate and predictable, benefiting both landlords and tenants.