Buy-to-let landlords in Scotland are enjoying better returns on their investment than their English counterparts, according to the most recent Scotland Buy to Let Index from Your Move.
The Index reveals that the average Scottish rental price increases by 6% during the year to April. As such, the typical Scottish rental property let for £574 per month, with all regions of the country seeing an increase in the average rental price.
Rental prices in the Edinburgh and Lothians region rose by 2% in the last 12 months to hit an average of £655pcm, according to the report.
The price growth here is being driven by a fall in suitable housing stock, particularly in the city centre, where demand is strong.
However, there was faster growth in the south of Scotland, where rental values increased by 7.1% in the 12 months to April to hit an average of £564pcm.
Investors in Scotland enjoying higher returns
In the East of Scotland, average rents rose by 2% to reach £655pcm – largely due to a rise in demand from families searching for three and four bedroom properties.
Inverness was another region to see an increase in demand for family properties.
Brian Moran, letting director of Your Move Scotland, said: ‘Demand continues to outstrip supply in Edinburgh, with this driving the price increases in all areas of the capital. The wider Lothians area remains very popular and any property with an EH postcode is in very high demand. Prices here continue to outstrip the rest of Scotland by some margin.’
‘Yet Edinburgh wasn’t the area which had the fastest growth in the country. Prices in the south of Scotland have risen 7.1% in the last year, a stellar performance. Landlords across Scotland also continue to enjoy higher returns on their investment than their counterparts in England and Wales, with the typical property offering a 5% yield,’ Mr Moran added.