THE cost of renting in Scotland is now growing at an "affordable" pace after two years of steep increases, experts have said.
The latest Scotland Buy-to-Let Index from lettings agent network Your Move, found that the pace of annual rent growth has dropped by two-thirds during the past year. The average rent is now just 1.2 per cent (£6) higher than a year ago.
This represents a slowdown compared to the 3.9 per cent (£20) annual jump in rent prices seen in 2013, and follows a 0.4 per cent monthly drop in average residential rents to £536 per month.
Christine Campbell, regional managing director of Your Move, said: "Annual rent growth has braked sharply over 2014, reducing the speed of rent rises to a sustainable and affordable pace.
"This is providing some welcome relief to the thousands of renters itching to jump on the housing ladder.
"This wider downturn in growth during 2014 marks a return to the natural market rhythm. Scottish rents were holding fast on an even keel throughout 2011 and 2012, until the abolition of tenancy fees in November 2012 sparked a new tide of unnaturally steep rent hikes."
Overall, rents are higher than a year ago in three out of five regions of Scotland, including Edinburgh and the Lothians and Glasgow and Clyde.
The report warns that tenants are still feeling the squeeze despite low rent increases, with the financial strain of Christmas taking its toll on household budgets.
According to the survey, the proportion of rent coming in late in Scotland rose to 7.2 per cent in December, the highest level since May 2013.
Ms Campbell said: "Christmas is a brutal time for bank balances, and rent payments fell by the wayside in December in the clamour of all the additional costs. But while we expect a certain seasonal setback, over the year as a whole, tenant finances have retreated.
"After some improvements in the summer months, the cycle hasn't been broken, and we're back to where we started - with too many Scottish households still mired in financial difficulty and struggling to pay the rent on time."
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