The rental market is flourishing in Dundee, according to letting portal Citylets.
The property company said that living in rented accommodation is now firmly embedded as a long-term lifestyle choice.
According to Citylets’ quarterly report, which covered October to December 2013, the private rented sector in Scotland continued to remain strong and sustainable.
Despite the resurgence of the housing market, interest for rented property in Dundee remains strong.
Thomas Ashdown, founder of Citylets, said Dundee’s student population played a crucial part in the rental market.
“As we have witnessed in other university cities such as Edinburgh and Glasgow, the student sector plays a key role in influencing the rental market,” he said.
“The position with Dundee’s high student population is no different and the evidence from the Citylets quarterly report suggests that demand in the city for larger properties in particular is being buoyed by the student sector.”
The average monthly rent in Dundee rose just 0.2% year-on-year to sit at £528. However, pockets across the city have recorded exceptional changes.
Dundee’s one and two-bedroom flats record the highest average annual rent increases, up 3.2% and 1.3% respectively.
The DD1 postcode topped the average rental price table, with the £634 figure up a sizeable 12.2% year-on-year.
Dan Cookson, senior analyst at Citylets, said: “The main characteristic of the Dundee private rented market has been stability, with prices experiencing minimal growth throughout the year.
“When you consider that there has been a resurgence of the house-buying market, this shows the sign of a maturing rental sector in Dundee that is serving both tenants and landlords well.
“This all points to clear evidence that validates the increasing role the private rented sector now plays in the fabric of Scottish society.
“Living in rental accommodation in Dundee is a desired lifestyle choice that is here to stay.”
In Dundee there are more private rental tenants (28,887) than either council tenants (22,581) or housing association tenants (15,571).