Rents increased in Scotland by 1.2% in the 12 months to January 2018
Private sector rents in Scotland have continued to trend upwards in the last year, although growth was slower than in recent months, the latest index shows. Average rents increased by 1.2% in the 12 months to January 2018 to £570 per month and the strongest performance was in the Highlands and Is
Published -
Feb 28, 2018 3:57 AM
Private sector rents in Scotland have continued to trend upwards in the last year, although growth was slower than in recent months, the latest index shows. Average rents increased by 1.2% in the 12 months to January 2018 to £570 per month and the strongest performance was in the Highlands and Islands, according to the date from the Your Move index. Overall, three of the five regions covered in the index recorded rent rises, led by a rise of 8.2% in the Highlands and Islands to an average of £631. There was also a solid performance in Edinburgh and the Lothians with a year on year rise of 2.5%. The data also shows that the East of Scotland is the cheapest place to rent a property with the typical home costing £537 per calendar month. Glasgow and Clyde saw rents fall by 1.2% to an average of £558, while in the South of Scotland rents fell by 1% to £550. The index report also reveals that yields have fallen slightly. The typical property investor saw returns of 4.7% in January 2018, down from the 4.8% recorded in December and below the level recorded throughout 2017. A year ago, in January 2017, the average property delivered a yield of 4.9% but they still compare favourably to those found in England and Wales where the average yield was 4.4% in January. ‘The new year has started in a positive fashion for the Scottish rental market, with growth in three-fifths of the regions surveyed. Although yields have dropped back slightly they still remain highly competitive and well above the England and Wales average,’ said Brian Moran, lettings director at Your Move Scotland. ‘A return of 4.7% also compares very favourably to other asset classes and forms of investment. Arrears levels, often an issue in the Scottish market, look to have stabilised. This is great news for both tenants and landlords, who have greater certainty with their investment,’ he added.
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