Photo: Moyan Brenn (Flickr)
Rents are rising faster in Scotland than in England or Wales, accordng to new figures, with values reaching record highs in the country’s capital.
Scotland is seeing stronger annual rent growth than England and Wales, according to the latest Scotland Buy-to-Let Index from Your Move.
The report from letting agency network reveals that Scottish rents have risen by £12 (2.2 per cent) in the past 12 months, ahead of the 1.5 per cent increase recorded in England and Wales.
Scottish rents are currently rising faster on an annual basis than across seven other UK regions, explains Your Move, with the average rent in Scotland now at £537 per month, back in line with the record set in August this year. Rents climbed a moderate 0.3 per cent (equivalent to £1) in the month to October, recovering from a dip during September.
Nonetheless, taking a longer-term view, the rate of growth has cooled. Annual rent rises have eased from a 3.2 per cent increase over the year to October 2013.
As of October the gross yield on a typical rental property in Scotland stands at 4.1 per cent, the same as the previous month. While stable on a monthly basis, this represents a slight fall of 0.1 per cent since October 2013, when the gross yield on a rental property averaged 4.2 per cent.
Christine Campbell comments: “The question of Scottish independence loomed large over the housing market this summer, and property price growth faltered as would-be buyers and investors hesitated to see how the votes rolled in. While this has left a tiny imprint on landlord returns in the past couple of months, this impact was cushioned by stable and resilient rental income – and the outlook certainly hasn’t dulled for buy-to-let. Encouraging consistency in gross yields are sowing the seeds of further investment, attracting new property investors to the mix.”
Source: The Movechannel