Scotland has seen some of the strongest apartment rental price hikes in the past five years with Glasgow and Edinburgh up 51 per cent and 27% respectively, according to new research.
The latest ‘Big Six’ data from estate agency JLL - which tracks residential development activity, prices and rents across Leeds, Birmingham, Manchester, Bristol, Edinburgh and Glasgow - showed that demand for city centre homes had risen for the first time since before the pandemic.
Glasgow recorded the most significant annual increases in rents, with a shortage of new stock and higher-specification new builds pushing average prices up by more than 20% in summer 2022 compared to the same period last year. Edinburgh recorded a 5% increase during the same period.
READ MORE: Falling house prices will bring renters limited comfort
On the new build front, the average price has risen by 6% over the past year in Edinburgh and 12% in Glasgow. Across the six market analysed, JLL found that nearly 100,000 city centre homes have been completed in the past five years.
“While recent political and economic events have impacted investor demand, the fundamentals of our two largest cities is strong," said Jason Hogg, an Edinburgh-based director with JLL. "There is an under-supply of new energy efficient homes but the popularity of Edinburgh and Glasgow due to being full of character, life and energy, shows no sign of abating.
“The upward trajectory of city centre living is extremely exciting but to maintain momentum, it’s essential we focus on meeting the requirements of occupiers and continually support the business and civic communities across Scotland.”
READ MORE: Decline in mortgage approvals bolsters predictions for falling house prices
Marcus Dixon, director of UK residential research at JLL, added: “Forewarnings of the death of the city centre were wide of the mark. Our research shows that the UK’s big six regional cities are increasingly witnessing a return of students and young professionals which will fuel further development and wider economic growth.
“We anticipate this growth will continue as city centres become increasingly attractive places to live, work and study. What’s needed now is some economic and political stability to ensure businesses invest in that growth in the long run.”
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