Market Analysis 1st Jun 2017
Buy to let in Scotland is booming according to the latest Scotland Buy to Let Index from Your Move. The Index reveals that the average Scottish rental price increased by 6% during the year to April. The average rent is £574 per month, with all regions of the country experiencing an increase. These figures illustrate the strength of the private rented sector in Scotland, with 14% of all households now calling the PRS home, compared with just 5% back in 1999.
In Edinburgh & the Lothian’s demand continues to outstrip supply resulting in rental prices rising 2% in the year to April, hitting an average of £655 per month, and a month on month rise of 0.6%.
Rents in the south of Scotland grew a whopping 7.1% to an average of £564 per month.
The Index noted a rise of average rents in the East of Scotland by 2% to £655 per month, largely due to high demand from families looking for 3 or 4 bedroom properties.
Glasgow and Clyde was the only region to see a drop in rents, with a decrease of 1.2% to £570 per month, while in the Highlands and Islands region rents were flat compared to last year but rose 1% between March and April, faster than anywhere else in the country, to £596.
The research also revealed that 11.3% of tenancies across Scotland had arrears of 1 day or more during April, which is a small increase on February and March, and perhaps a suggestion that tenant finances have deteriorated slightly.
Overall, landlords in Scotland are enjoying higher returns on their investment than their counterparts in England and Wales, with average yields sitting at a very healthy 5%, making the Scottish buy to let market highly appealing for many (see accompanying newsletter article on capital and yield).
Brian Moran, of Your Move Scotland, comments: “Demand continues to outstrip supply in Edinburgh, with this driving the price increases in all areas of the capital. The wider Lothian’s area remains very popular and any property with an EH postcode is in very high demand. Prices here continue to outstrip the rest of Scotland by some margin.”
Contact The Key Place now if you would like information on our buy to let or fully managed services.