Rents in Scotland increased by an average of 0.3% in October compared with the previous month and are now 0.4% higher than a year ago, taking the average monthly rent to £558 per month, according to the latest Scottish Buy to Let Index from Your Move.
Growth in private rents north of the border was led by Edinburgh and the Lothians where rents are up 6.1% year-on-year and even though rental yields have dropped they remain higher than in England and Wales.
Your Move report that the growth in rental prices in Scotland continued to outperform expectations despite uncertainty in both the UK and the wider global economy.
“Landlords have been thrilled with the performance of Scottish rental properties in recent months, and October again showed how strong this market is,” said Brian Moran, letting director for Your Move in Scotland.
“This month yields may have fallen but they remain much higher than equivalent properties in England and Wales,” he added.
The Scottish rental report also reveals that tenant arrears in Scotland have improved significantly this autumn. In October 7.9% of all tenancies had arrears of a day or more which is much lower than the 12.5% figure recorded in September, reflecting the improved state of Scottish tenants’ finances.
October’s figure is also much lower than the same point in 2015, when arrears represented 13.8% of all tenancies.
Moran continued: “The big news too is the improvement in tenant finances, meaning that fewer landlords are facing problems with late and non-payment of rent and, in terms of regional results, there has been excellent performance of the Edinburgh and Lothians region shows that London is not the only UK capital city with a booming property market.”
It was a mixed picture elsewhere in Scotland. Landlords with properties in the Highlands and Islands continued to enjoy higher than average rents, even though prices have dropped by 8.1% over the past 12 months. The typical property in this area now rents for £576pcm.
Glasgow and Clyde was close behind with average rents of £573pcm but this was down 1% year-on-year and by 0.2% month-on-month.