Private sector rents in Scotland rose by almost 5% in the year to February 2017, taking the average rent to £575, according to the latest buy-to-let index by Your Move.
In total, rents were up by 4.9%, however the Index indicates that demand is sliding, leading to a fall in rents in some locations. These include Glasgow and Clyde and Highlands and Islands.
The overall rent rate was down by 0.1% month-month. The East of Scotland remains the cheapest place to rent a property in the country, with an average of £535 per month. However, this is 2.3% higher than in February 2016.
In terms of performance, the strongest was in the South, where rents rose by 4.2% year-on-year to £560.
Yields remained solid, with landlords and investors continuing to see good returns from the Scottish rental market in February. Average yields were 4.9%, unchanged both month-on-month and year-on-year.
Compared to the rest of the UK, Scotland offers competitive yields, with investors here seeing better returns than those in England and Wales. Only landlords in the North East and North West of England saw more impressive returns, of 5.3% and 5% respectively.
Rents in Scotland grow year-on-year
Brian Moran, lettings director of Your Move Scotland, observed: ‘The Scottish rental market continues to grow as a whole, despite variations on a regional basis. In February we have continued to see demand reduce in several areas, particularly those with high numbers of migrants from European Union countries.’
‘Government schemes have also had an impact on the rental market with more people being able to purchase their first home and leave the rental arena. For landlords and investors yields have remained strong, particularly when compared to the returns on property in England and Wales,’ Moran added.