Posts with tag: rents in Scotland

Scottish rents at highest level since February

Published On: September 1, 2017 at 8:52 am

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The Scottish property market continued its steady progress throughout July, with property prices rising and rental yields staying strong.

Average Scottish rents – not seasonally adjusted – was £575 during July 2017, according to the latest report from Your Move Scotland. This was 1% more than the £569 recorded last month and the greatest total recorded since February.

The most expensive region was Edinburgh and Lothians, with rents standing at £662 per month. On the other hand, the lowest were in Eastern Scotland, reaching £541 per month on average.

Improvement

Brian Moran, Lettings Director at Your Move, observed: ‘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.’

 

Concluding, Mr Moran said: ‘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.’

‘Looking ahead, we can expect the end of the summer to see a rise in letting activity as students move into new properties ahead of the academic year.’[1]

Scottish rents at highest level since February

Scottish rents at highest level since February

[1] http://www.propertyreporter.co.uk/landlords/scottish-rents-hit-highest-total-since-february.html

 

 

Rents in Scotland reach record highs

Published On: July 12, 2017 at 8:59 am

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Recent figures show that rents in Scotland have reached a record high, with demand from renters continuing to exceed supply.

The report for the second quarter of 2017 indicates that rents rose by 1.5% year-on-year to hit an all-time high of £789 per calendar month. This was led by growth in Edinburgh and Glasgow.

Build to Rent

A key driver of the Scottish rental market is the rapidly growing Build to Rent. As Stuart Montgomery, Director of Lettings at Rettie & Co, observes: ‘Build to Rent is now emerging in Scotland as a key new residential use class, with over 2,500 units now in the pipeline in Edinburgh and Glasgow.’[1]

By region, the Citylets report offered these insights into rental markets in Aberdeen, Edinburgh, and Glasgow:

Aberdeen

The rate of decline eased in the quarter from -11.2% to -5.2%. In addition, there was positive growth for four-bedroom properties, representing the first rise for any property type in the city for nine quarters.

Average rents in Aberdeen are currently £788pcm – just £1 below the national average.

Lisa Breber of Stonehouse letting noted: ‘There is also evidence to suggest that the decrease in rental levels is now beginning to stabilise. Stock levels in Aberdeen remain high, however, generally a well presented and fairly priced property will let quickly.’[1]

Rents in Scotland reach record highs

Rents in Scotland reach record highs

Edinburgh

In Scotland’s capital, there has been positive annual growth every quarter for the last 8 years. Now, the average property to rent here stands at £1,037pcm, representing a new all-time high.

The Citylets Index for the city indicates that there has been around a 4% growth annually since the start of 2008. However, this figure has risen to around 6% since 2012.

Glasgow  

Glasgow has seen year-on-year gains regularly hit between 4-5%. Rents here are now £755pcm, a rise of 5% from the same period in 2016. All property types here experienced positive gains, with rents for four-bedroom dwellings rising by 10.1% over the year.

Strong Growth

Thomas Ashdown, MD of Citylets, observed: ‘Our latest report underlines the metronomic strong growth in Scotland’s largest cities.’[1]

‘Edinburgh has recorded positive annual growth every quarter for a full eight years and averages 6% over the last five years. Glasgow is up 5% on average over the same period,’ he continued.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/rents-hit-record-high-in-scotland-as-demand-far-exceeds-supply

 

Scottish rental market slowed in May

Published On: July 4, 2017 at 11:59 am

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The latest report from Your Move Scotland has revealed that the Scottish rental market slowed during May, with prices falling ahead of the UK General Election.

As such, the average rent in the country stood at £561 in the month- a fall of 2.3% from April but 2.2% greater than in May 2016.

Performance

Prices in key city centres of Scotland continue to perform strongly- as have rural regions, such as the Highlands and the South. These areas are highly attractive to people relocating.

Four of the five regions in the survey saw rents rise during the last year. The front-runner was the South of Scotland, where rents rose by 8.8% in the last year.

Other regions to see year-on-year increases were the East (3.3%), Highlands and Islands (3.2%) and Edinburgh and Lothians (2.6%).

The only region to see a fall in prices year-on-year was Glasgow and Clyde, where prices slipped by 0.3%.

Scottish rental market slowed in May

Scottish rental market slowed in May

Returns

Landlords in Scotland are continuing to see strong returns, despite the overall fall in rents. The average yield in May was 4.9%- the same rate as recorded one year ago.

However, tenant finances were not as healthy, with 12.3% of tenancies having arrears on one day or more during May. This was slightly higher than the 11.3% recorded in April.

Brian Moran, Lettings Director of Your Move Scotland, observed: ‘With the General Election taking centre stage throughout May, it should come as no surprise that rents ticked down from their previous level.’[1]

‘Prices in most areas remain above where they were a year ago, with growth coming across a number of areas. Tenants are drifting towards city centre living or completely rural life as it was these areas which saw the most interest during May,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/scottish-rental-market-pauses-for-breath-in-may.html

 

Rents in Scotland grow year-on-year

Published On: March 31, 2017 at 11:58 am

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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.

Rent Rate

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

Rents in Scotland grow year-on-year

Growth

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.’[1]

‘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.[1]

[1] http://www.propertywire.com/news/uk/rents-almost-5-scotland-february-latest-index-shows/

 

Good start to 2017 for Scotland’s rental market

Published On: March 10, 2017 at 9:49 am

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The lettings market in Scotland has enjoyed a positive start to 2017, according to the latest Your Move Scottish buy-to-let index.

Average rents north of the border currently stand at £571 per month, with Edinburgh and the Lothians seeing the strongest growth. Rents rose year-on-year here by 3.3%.

Rental Regions

Regions in the East of Scotland, including Fife, Dundee and Perthshire, remain the cheapest places to rent.

The highest rents were evident in the Highlands and Islands, with average rents totalling £584. However, rents here are down by 4.3% in comparison to twelve months ago. In the South, typical rents rose by 2.7%.

One other region that saw a year-on-year fall was Glasgow and Clyde, where prices have gone down by 0.9% since January 2016 to hit £566.

Taking Scotland as a whole, the £571 average rent seen in January 2017 was £2 cheaper than in December 2016 and £23 more expensive than the £548 recorded in January 2016.

Good start to 2017 for Scotland's rental market

Good start to 2017 for Scotland’s rental market

Yields

During January 2017, the average rental yield in Scotland was 4.9%, the same as in January and December 2016. This yield is particularly strong in comparison to other regions of the UK.

Average rental yields in England and Wales in January stood at 4.6%. Only landlords in the North East and North West regions of England saw stronger returns, of 5.3% and 5% respectively.

Brian Moran, lettings director of Your Move, said: ‘It was a strong start to the new year for many landlords across Scotland as rents continued to perfom well. Edinburgh and Lothians is the best performing region with prices growing faster than anywhere else in Scotland.’[1]

‘Despite new Government rules which cut tax relief on buy-to-let properties, yield levels have remained strong in the past 12 months. Yields are exactly the same as a year ago and this suggests the Scottish rental market continues to attract quality investment into its housing stock,’ he added.[1]

[1] http://www.propertywire.com/news/uk/positive-start-2017-scottish-rental-market-latest-buy-let-index-shows/

 

Annual Scottish rent rises slowest in Britain

Published On: March 23, 2016 at 12:10 pm

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Rents north of the border are increasing at only two-thirds the rate of those in England and Wales, according to latest figures.

Data released by Your Move shows that Scottish rents rose by just 2.1% year on year. This was in comparison to 3.3% in England and Wales.

In addition, the figures show that annual rental growth in Scotland has slowed from the 2.1% recorded in January, but has improved from the 1.1% increase shown in February 2015.

Irony

Brian Moran, lettings director at Your Move Scotland, believes it is ironic that Scotland is seeing one the largest Government interventions in the sector when rents are rising at the slowest rate in Britain.

‘Like in any market, affordability is a fundamental check on prices. Rental arrears are a great benchmark in the market and their frequency is falling,’ he noted.[1]

Moran went on to say that the Private Tenancies Bill signed last week indicates a paradigm shift in the sector in Scotland. He feels this will introduce a new artificial influence in the market, alongside territorial supply and demand.

‘Intervention in the market has had negative side effects in the past, noticeably the abolition of tenancy fees in 2012 and it will be interesting to see how landlords recuperate and recover from this regulatory blow,’ Moran continued. ‘Anything that makes buy-to-let investment slightly harder to swallow and managing property portfolios more of a painful process for landlords risks cutting off the inflow of investment. Tenants will ultimately be the ones who feel the effect on their bottom line, if the supply of properties to let dries up.’[1]

Annual Scottish rents rises slowest in Britain

Annual Scottish rents rises slowest in Britain

Regional rises

More figures from the report show that in the twelve months to February 2016, three out of the five regions in Scotland have seen positive yearly growth in rents. Edinburgh and the Lothians led the way, with growth of 7.7% recorded. This has taken typical rents to £644, up from £598 in February last year.

Rents in the South of the country currently stand at £515 per month, a rise from £498 twelve months ago. This 5.3% yearly rise is the second fastest increase seen in the year to February. In the Highlands and Islands, rents are 2.5% greater than one year ago, taking rents here to £554.

However, the East of Scotland has seen rents drop by 2% year-on-year. This is the fourth consecutive month of negative annual growth in the area and has taken rents to £520 per month. Glasgow and Clyde has also seen a drop in yearly rents, which have fallen by 0.8%.

[1] http://www.propertywire.com/news/europe/scotland-buy-let-index-2016032311706.html