Tenement flats, Hawthorn Street by Richard Sutcliffe, CC BY-SA 2.0, via Wikimedia Commons
Private sector rents have continued to rise in most areas of Scotland, according to the latest official figures.
Since 2010, the average monthly rent for a 2 bedroom property has increased by 66.3% across the country. This is higher than the Consumer Prices Index (CPI) increase for the same period, which was 54.7%.
But rent increases have not been distributed evenly, with certain regions seeing steeper rises than others in recent years.
Lothian and Greater Glasgow have the highest average rents for a 2 bedroom property, at £1,356 and £1,094 respectively.
In the past year, average rent has remained stable in Lothian, decreasing slightly by 0.1%. It was £1,358 in 2024.
However, Greater Glasgow has seen a sharp increase of 6.8% since 2024. This is almost double the increase of the CPI for the same period, which was 3.1%.
Andrew Watson, a Research Affiliate with the UK Collaborative Centre for Housing Evidence and Research Director at Housing Opinion, says there are three main factors contributing to these increases.
The first is operating costs for landlords. “Mortgage costs, repairs and maintenance, compliance requirements, insurance, and general operating expenses have all increased over recent years,” says Watson. Landlords raise rents to cover these costs.
The second is that demand is currently greater than supply, especially in the Central Belt. There are many causes, including “barriers to accessing owner occupation, a long-standing shortage of social housing, and a sustained increase in student numbers,” he says.
The final factor is the temporary rent cap introduced during the pandemic. “Many landlords were unable to adjust rents, leading to a period of ‘catch-up’ once restrictions eased,” explains Watson.
The rent controls introduced during the pandemic were temporary, but there may be more on the way.
Last November, Parliament passed the Housing (Scotland) Act 2025.
The new law will give Scottish Ministers the power to designate Rent Control Areas, where rent can only be increased by the CPI plus one percentage point, up to a maximum of 6%.
While this offers renters protection from large rent hikes, it may have unintended consequences.
According to Watson, registered landlord numbers have decreased over 8% in the last decade.
“Many landlords cite increasing legislative and regulatory burdens, including rent controls, as reasons for exiting or considering exit,” he explains.
“If falling landlord numbers, or a failure to attract new entrants, eventually translate into falling property numbers, the supply–demand imbalance will worsen, placing further upward pressure on rents rather than easing them.”
This could mean more renters competing for fewer properties.
The new legislation is expected to come into effect by 2027.
