Rents in Scotland rise by 2.2%

Michael Lloyd

January 2, 2018

The average Scottish rent rose by 2.2% in the year to November 2017, Your Move Scotland found.

A typical property is now let for £572 per month on a seasonally adjusted basis and has remained at this level since July 2017.

Brian Moran, lettings director at Your Move Scotland said: “While some areas are growing faster than others, the Scottish rental market as a whole remains on a positive trend – with the average rent increasing by 2.2% year-on-year.”

Many commuters see rents and travel costs both rise

“Particularly pleasing is the improvement in tenant finances, as fewer people are finding themselves in financial difficulty than last month.

“This shows that despite year-on-year rent rises, more tenants are able to pay their rent in full and on time.”

The Edinburgh & Lothians region continues to have the highest rents in Scotland, with the average property in the capital city and surrounding area now standing at £667 per month.

Although this is 3.3% higher than a year ago, rents have ticked down 0.4% between October and November.

Landlords and property investors in Scotland continued to enjoy impressive yield levels,

The average return was 4.8% in November 2017, the same level as both September and October. These compare favourably to those found in England and Wales, where the average yield was 4% this month.

The Private Residential Tenancy agreement was introduced on December 1 so landlords will need to ensure they are using the new lease agreement and are not starting tenancies under the old short assured tenancy (SAT) leases.

Landlords must be prepared for the introduction of the Letting Agent Code of Practice from 31 January 2018 no matter which part of Scotland a property is in.

Letting agents will be required to join a Register of Letting Agents and, with this date fast approaching, Your Move Scotland is urging all property investors check their letting agent will be compliant with the new rules.

Letting agencies must have applied to join the code of practice by 30 September 2018. From that point it will be a criminal offence to conduct letting agency work if you aren’t on the register.

Those breaking the rules could face a fine of up to £50,000 and up to six months imprisonment.

Moran added: “However, despite the positive news, there have been changes for letting agents, with more set to come on the horizon.

“Landlords should make sure they understand what the new tenancy agreement legislation means for their properties and look for support from letting agents to help them through these changes.”

Only one region, the Highlands and Islands grew faster than Edinburgh & Lothians in the last 12 months.

Prices increased by 7.3% since November 2016, with the average property now let for £618 per month.

This was also the best performing region compared to the previous month, with prices growing by 0.9% between October and November.

Only one region posted a year-on-year price fall, Glasgow and Clyde, where prices have dropped 6.5% and now stand at £540.

The East of Scotland remains the cheapest place to rent a property with an average rent of £539 this month, less than any other region.

 

 

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