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Free Market Rents Show Signs of Stability After Rent Controls Dropped

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Thu 22 Jan 2026

Free Market Rents Show Signs of Stability After Rent Controls Dropped

Recent data suggests that private rental prices in Scotland are now stabilising following the end of government-imposed rent controls. According to figures from DJ Alexander Ltd, one of Scotland’s largest lettings agencies, average rents across key property sizes have shown moderate changes over the past year, reflecting a more balanced market.

For example, the typical monthly rent for a two-bedroom property increased by £28 to £921 in the year to September 2025—an annual rise of 3.1%, which aligns closely with inflation over the same period. One-bedroom rents also rose by £28 (4.0%) to £738, while three-bedroom rents climbed by 1.6% to £1,154. In contrast, four-bedroom rents edged down by £26 to £1,767.

Regional differences remain notable: Lothian has the highest average rent for two-bedroom homes at £1,356, whereas Dumfries and Galloway sits at the lower end with £569. Over the longer term from 2010 to 2025, only a handful of areas experienced rent growth outpacing cumulative inflation, with the rest seeing rents rise more slowly in real terms.

DJ Alexander’s chief executive says the latest figures show the rental market settling into a pattern more aligned with overall economic trends. The annual rate of rent growth has eased back from the sharp increases seen when rent controls were first introduced, which had temporarily squeezed supply and fuelled rapid rental inflation.