Scottish rental market flourishing
Scotland continues to return higher yields for buy-to-let landlords than those located south of the border, new research has shown.
Data from Your Move reveals that landlords in Scotland are achieving an average annual yield of 4.9%, compared to 4.4% in England and Wales, as rents continue to rise.
The latest Scotland Buy to Let Index from Your Move indicates that the average Scottish rental price was £575 a month in July, an increase of 1% on the previous month, when the figure was £569 a month. Within England, only the North East and North West regions had comparable figures.
Edinburgh and the Lothians have the most expensive rents in Scotland, with an average of £662 per month for July.
By contrast, the cheapest area for rent is the East of Scotland, where Aberdeen rents average at £541 per month.
Brian Moran, letting director at Your Move Scotland, said:
The rental market in Scotland continues to improve with rents in July performing as well as they have all year.
“The next year will be an interesting time for the rental market due to the launch of a new style of tenancy agreement in December, while additional rules governing Scottish letting agents come into force in 2018.
“Whether you’re a landlord, tenant or letting agent now is the time to take stock and make sure the rental market is working for you and that you’re prepared for these changes.
Andrew Turner, chief executive at Commercial Trust, said:
The buy-to-let market in Scotland continues to be healthy, with rent rises helping to increase yields for buy-to-let landlords.
“Edinburgh, as one of the two main hubs for business in Scotland, is always likely to attract more people, with many looking to rent. This may well have an impact on the surrounding Lothians, where rent has also risen.
“As the housing market in Scotland continues to evolve, there remains plenty of opportunity for buy-to-let landlords over the coming months, ahead of legislative changes.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.