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Good start to 2017 for Scotland’s rental market
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
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
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/
