Average rents across Scotland rose by just 1.0% in the year to May, according to fresh figures highlighted by DJ Alexander, marking the slowest annual increase for a decade after the end of emergency rent controls.
The agency said average monthly rents increased by £10 to £1,009 over the period, well below the wider inflation rate, and down sharply from the double-digit growth seen at the height of the rent cap era.
For landlords and investors, the new figure matters because it cuts against the simple claim that removing controls automatically means another surge in rents. It also lands as the Scottish policy argument over renewed intervention remains live ahead of further housing reform.
Regional gaps remain even as headline rent growth slows
DJ Alexander said annual rent growth in Scotland is now well below the levels recorded when controls were in place, with marked regional variation still visible across the country. Lothian remained the most expensive broad rental area at £1,425 a month, while Greater Glasgow stood at £1,272.
David Alexander, chief executive of DJ Alexander Scotland, said the latest figures suggest the market has settled since the end of rent controls and that supply has improved, helping inflation cool.
That does not mean the pressure has gone away. Some lower-cost areas are still recording stronger annual increases, and a slower national figure will be little comfort to landlords facing higher finance, repair and compliance costs than they were a year ago.
This follows Residential Landlord’s coverage of the wider political row over rent controls. It also sits against Residential Landlord’s earlier report on stronger Scottish rent growth, which makes the latest slowdown look more like a market recalibration than a straight line trend.
Landlords should watch supply as closely as headline inflation
The more useful reading for investors is not that rents are barely rising, but why. If supply is improving modestly and tenant demand is easing from extreme levels, that can reduce price pressure without solving the deeper shortage that still defines much of the market.
That matters because the political case for another intervention may weaken if rents stay subdued, but it will not disappear. Landlords in Scotland still face a market where policy risk can return quickly if ministers decide the cooling trend is not enough.
The underlying source material cited by DJ Alexander is available in its market update, Rental market is stabilising, but demand still outstrips supply.
Opinion
A 1% annual rise is not proof that Scotland’s rental market is healthy. It is proof that blunt policy arguments miss what is actually happening on the ground. Landlords should welcome cooler inflation, but they would be unwise to assume the rent control argument has gone away.
