Scotland gives high rental incomes

Michael Lloyd

December 5, 2019

Scotland lockdown

Scotland is home to 18 out of the top 20 areas with the highest annual rent as a proportion of house prices, lettings management platform Howsy has found.

Glasgow tops the table with the annual rent of £10,596 accounting for 7.7% of the average house price.

This was closely followed by Inverclyde (7.1%), Midlothian (6.9%) and West Dunbartonshire (6.9%).

Calum Brannan, founder and chief executive of Howsy, said: “There are a whole host of costs to account for when investing in a buy-to-let property but the most important is, of course, the rental income available.

“However, high rental income doesn’t necessarily mean an area offers the best investment option and if it requires a high initial cost to buy the property, you could be recouping that investment for longer than you might in other areas with a lower rental income.

“It’s about finding that balance and areas such as Glasgow not only offer a relatively affordable property cost to begin with, but the rental income available as a proportion of house price is far higher than anywhere else in the UK.”

Burnley is the highest outside of Scotland and across England at 6.5%, with Belfast ranking 10th (6.2%).

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