Scottish residential rent rises have halved in four months

The Scottish residential rental market as seen rents rising at half the speed they were during the summer months, slowing from a 3.1% annual rise in June to 1.6% October. After peaking at record prices in the summer, Scottish rents have been falling in recent months but there are signs that growth is starting to rally again, according to the latest buy to let index from lettings agent network Your Move. They increased by a modest 0.2% between September and October, the first month on month rise since July, and takes the average monthly rent in Scotland to £546, just £1 higher than the previous month in cash terms. Despite widespread recognition that tenant demand is currently outpacing supply of available homes to let, landlords believe that rent rises are likely to continue on a slower trajectory than witnessed earlier this year. Indeed, according to the latest Landlord Survey from Your Move, landlords expect rents to increase by just 1.4% over the next 12 months. Only 32% of landlords are intending to raise their rents next year, with the main motivation being to cover the cost of inflation. ‘There are indications from landlords that this trend will continue until 2016. Ultimately, rents in the private rented sector reflect what people are willing and able to pay, and are delimited by household incomes and monthly earnings,’ said Brian Moran, lettings director at Your Move Scotland. A breakdown of the figures shows that rents are higher year on year in every region of Scotland except Glasgow and Clyde in October. Scotland’s second city has seen a 0.9% drop in rents since October 2014. This means the typical rent in the area now stands at £560, down from a record of £575 in the summer of 2014. Compared to a year ago, the Highlands and Islands has experienced the biggest increase in rents, up 5.7% in 12 months. However this rate of growth is starting to slow after a monthly price drop in October, and rents have come down from their historic peak in September. After this, average rents in the South of Scotland are up 2.6% year on year. Annual rent growth in Edinburgh and the Lothians has increased from 2% in September to 2.5% in October, meaning that rents are now £15 more expensive than a year ago in Scotland’s capital city. Standing at £630 per month, this is a new record for rent prices in the region, and 15% higher than the average rent in Scotland overall. The East of Scotland has experienced a more modest 1% uptick in rent prices in the past 12 months, with monthly rents rising by £5 to £522. Three of the five regions of Scotland have seen rents increase in the past month. The urban centres of Edinburgh and the Lothians and Glasgow and Clyde have seen the strongest month… Continue reading

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