Buy-to-let landlords in Scotland continue to achieve higher returns on their property investments than their counterparts south of the border, the latest Scotland Buy to Let Index from Your Move reveals.
The average Scottish rental price edged up by 2% in the 12 months to October to reach to £573 a month, but this masks wide variations between the five Scottish regions.
According to Your Move, landlords in Scotland continue to achieve a 4.7% yield on average on their properties – a higher return than the average yield of 4.3% in England and Wales.
Only landlords with properties located in the North East and North West regions of England enjoyed higher returns than the average in Scotland.
Brian Moran, lettings director at Your Move Scotland, said: “Landlords continue to enjoy strong returns on their investment, particularly when compared to investors south of the border.
“An average return of 4.7% is also strong when compared to other forms of investment.”
There continues to be a disparity in prices in the different regions of Scotland, with the Highlands and Islands once again the most expensive place to rent in the country, Your Move Scotland found, with the average property let for £698 in October.
The Highlands posted the largest rent rises in the last 12 months, with the average property costing 14% more today than it did a year ago, with growth supported in part by a noticeable increase in the number of English landlords buying in the area.
The next fastest growth came in the Glasgow and Clyde region. Prices here rose by 13% in the year to October to reach an average of £613, which is the third most expensive place to rent in Scotland.
Sandwiched between the two aforementioned areas is the Edinburgh and Lothians region. Prices here average £684 per calendar month, this follows growth of 2.1% in the last year.
Each of the remaining regions saw their rents decrease on an annual basis.
In the East of Scotland, the cheapest region to rent in Scotland, prices dropped by 1.7% year-on-year to hit £529.
Finally, in the South of Scotland, prices fell faster – dropping 4.4% - and are now £535 per calendar month.
Moran commented: “Perhaps it is the breath taking scenery tempting people out of the city, but the demand for properties in the Highlands and Islands has grown strongly in recent times.
“Last month it toppled Edinburgh and Lothians as the most expensive region, and in September its excellent performance continued.”