The rental market in Scotland continues to flourish, with all regions north of the border seeing rents rise in March compared with the previous month, the latest figures from Your Move Scotland has revealed.
The average property in Scotland now rents for £565 per calendar month, which is up 3.8% year-on-year, led by gains in the Highlands and Islands region, where rents grew 0.8% between February and March. This was ahead of the south of Scotland region where rents increased by 0.5% in the same period.
Growth in rents in both areas was fuelled mainly by increased demand and insufficient supply of family properties, with three- and four-bedroom properties particularity in demand in the Dumfries and Highlands areas, Your Move Scotland found.
“March saw a stellar performance across Scotland as every single region recorded higher rents than the previous month,” said Brian Moran, letting director, Your Move Scotland. “Demand is increasing in segments of the market such as family homes, showing there is room for expansion of the rental sector.”
“This increased demand is being seen in areas such as the Highlands and Dumfries, suggesting the rental sector is extending beyond the big cities,” he added.
But it was a mixed picture for other parts of the country. While East of Scotland (2.4%) and Edinburgh and Lothians (2.3%) both saw rents rise compared to March 2016; Glasgow and Clyde (-3%) and Highlands and Islands (-1.9%) experienced falls in rentals, particularly in certain towns, where for various economic reasons they have seen significant drops.
The most expensive region of Scotland continued to be the Edinburgh and Lothians area. The market in the capital city remains strong due to high demand from tenants, especially given the strong student population. The average rental property here let for £651 in March 2017, with no other area recording rents over the £700 mark.
At the other end of the scale, the East of Scotland is the cheapest place to rent a property in the country with an average cost of £536 a month.
Moran continued: “Yield levels have actually increased this month, bucking the trend seen in the rest of the UK. This shows Scotland remains a great place to invest, as well as a great place to live.”