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Year on year residential rents in Scotland increased by 3.1% in June, up from the 2.7% recorded in the previous month, the latest index data shows. This rise takes average rents to a new peak of £549 a month and June’s figure represents the fastest year on year rise since April 2014, according to the buy to let index from lettings agent Your Move. Rents also increased month on month, up 0.8%, which was a slight slowdown from the 1% recorded in May. But in the preceding six months rents were climbing at a rate of only 0.1% per month. The index shows that rents are hitting all-time local records in the parts of Scotland that have traditionally been more affordable to live, where rental prices are usually lower. On an annual basis, rents have risen across all five regions of Scotland and as rent growth accelerates across the country, new price records have been set in the East, Highlands and Islands and the South. Glasgow & Clyde have seen the biggest boost in rents year on year, with typical rental rises up 4.6% since June 2014. Rents in the Highlands and Islands have jumped 4.3% in the past twelve months, taking the average monthly rent to a record high of £563. Similarly, rents in the East and South of Scotland have both reached a new peak following annual rent rises of 4% and 2.1% respectively. In contrast, Edinburgh and the Lothian’s has experienced the smallest yearly increase of only 0.8% but this marks an improvement from negative growth in the year to May 2015. Rents in all five regions of Scotland are also higher month on month. The average monthly rent in the Highlands and Islands has risen at the quickest pace since May, increasing by 2.4%. Compared to the previous month, Edinburgh and the Lothian’s have seen a 1.7% rise in June. This brings the average rent in the area to £604 as it continues to be the most expensive location in Scotland to rent. In Glasgow and Clyde rents are 0.6% higher since May, and the South has witnessed a 0.5% monthly climb in rental prices. The East of Scotland has seen a more modest 0.2% uplift in the month to June 2015, a considerable slowdown. ‘It’s not just the big urban centres of Edinburgh and Glasgow which are coming up against an urgent shortfall of housing. There is strong demand for homes to let the length and breadth of the nation, and that is underpinning this build-up in rental prices,’ said Brian Moran Your Move lettings director. The index also shows that as of June 2015, the average gross yield on a rental property in Scotland stands at 3.8%, on par with the previous month, but down on a year ago when gross yields were 4% in June 2014. Taking into account property price growth and void periods between tenants,… Continue reading →
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