The cost of renting in Dundee has increased by more than 56% in the last five years, latest figures show.
Rent across the city costs an average of £904 according to a report by property agency Citylets.
A single bedroom home will cost £581 a month, and is usually let within 11 days of becoming available.
A three-roomed property costs on average £1,116 a month.
But it is two bedroomed homes which have seen the biggest cost increase, which will now set renters back £887 on average.
Why cost of renting in Dundee is going up
Dundee property manager Struan Baptie said there are not enough homes available for rent to meet expectations.
The cost of owning second properties for rent has increased due to inflation, higher mortgage rates and a higher cost of borrowing, he said.
“Rent prices are going up quite high. We try and keep prices sensible and affordable for tenants.
“There is just not enough stock to meet demand.
As a result, what residents pay can often reflect this.
Add that to an ever increasing demand for rental accommodation in Dundee, those looking can find themselves paying ever-increasing rates of rent.
Around 80% of properties in Dundee are rented within a month of going on the market.
“The rental market in Dundee is still strong and buoyant,” Mr Baptie adds.
Struan Baptie, a property manager in Dundee. Image: Struan Baptie Property Management”There are costs borne by landlords. The cost of borrowing is high. Material costs are high and these are often passed on to tenants.
“We are taking between 15-20 enquiries on properties, which shows how high the demand is.
“Rental prices will remain high over the coming twelve months.
“High costs of rent are hard on tenants. It does feel that some rents in the city are too high.
“That is why we try to keep rents at a more affordable level.”
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The average cost of a rental property in Scotland is now £1,097, according to Citylets.
Properties in the DD1 postcode, namely in the city centre, are above the average rate to rent in Dundee.
But while it has gone up, it is still lower than the Scottish average, buoyed by massive yearly increases in Glasgow and Edinburgh.
Of the country’s four major cities, only Aberdeen recorded a reduction in the average cost to rent a property in 2023.
Meanwhile, a two-bed property in Perth will cost on average £700 a month and in Kirkcaldy it is slightly lower at £689 per month.
Angus remains among the cheapest places in Scotland to rent a double-roomed home, costing on average £599 a month.
Only Arbroath has a lower monthly average, with a two-bed costing on average £573 a month.
