Residential rents in Scotland up slightly in August, latest buy to let index shows
Private sector rents increased slightly in Scotland at the end of the summer due to restricted to supply in popular areas with the average reaching £579 in August, a rise of 0.5%, the latest index shows. Average rents increased in four of five regions surveyed by the Your Move buy to let index with the Glasgow and Clyde region is the only region to record a year on year fall, down 4.1%.
Edinburgh and the Lothians remains the area with the highest rents at £666, some 4.1% higher than August 2016 and the lowest in in the East of Scotland at £540 which is up 2.5% compared to a year ago. The index also shows that the typical yield was 4.9% during August, unchanged from the previous month and from August 2016. Indeed, throughout 2017, returns on Scottish property have been between 4.9% and 5%.
Brian Moran, Your Move Scotland lettings director, said that this demonstrates the stability offered by the rental market in Scotland and the positive returns on offer to investors.
‘Rental prices are increasing across much of Scotland thanks to high levels of demand and poor supply in many areas, particularly in Edinburgh which saw prices rise by 4.1% over the year,’ he explained.
He pointed out that while Scottish landlords continue to see returns close to 5%, it is important that they now prepare for upcoming changes, most notably the Letting Agent Code of Practice which is due to come into force at the end of January 2018.