By using this website, you agree to our use of cookies to enhance your experience.


BTL landlords in Scotland continue to enjoy strong yields

Scotland’s rental market continued to go from strength to strength, with the average rental property north of the border generating a return of 4.7% for landlords in April, the latest data from Your Move Scotland shows.

Investor returns in Scotland continue to compare favourably to those found in England and Wales, where the average rental return currently stands at 4.3%.

The only two regions south of the border to offer returns higher than the Scottish average this month were the North East (5%) and the North West (4.8%).


Across Scotland the average rent increased 1.7% in the 12 months to April to reach an average of £581 per calendar month (pcm). 

Rents rose in three of the five regions surveyed, led by the Highlands and Islands region where prices grew by 3.6% year-on-year to reach £688pcm.

The only area to have higher rents was the Edinburgh and Lothians region, where the typical tenant pays £693pcm. This follows a 3.1% year-on-year increase.

The other area which posted an annual price rise was the East of Scotland, where rents grew by 2.1% to hit £542pcm.

Brian Moran, lettings director, Your Move Scotland, said: “As we enter the summer months, we can reflect on the resilience of the Scottish rental market, which has weathered a difficult winter admirably.

“The Highlands have continued their recent trend of strong rental yields. This is fuelled in part by an influx of young professionals into Inverness, such as student doctors at Raigmore Hospital.

“The market in this region has been further buoyed by a strong holiday lettings market as investors and tenants, from the south of Scotland and even England and Wales, are drawn to the beauty of the Highlands.

“Elsewhere we have seen rising demand from tenants for two and three-bedroom homes in commuting towns such as West Lothian and South Fife, which are providing a more affordable option for growing families.”

The South saw rents drop by an average of 1.2% year-on-year to stand at a current average of £540pcm, while rents fell in Glasgow and Clyde by a more modest drop of 0.3%, taking the average in the region to £586pcm.

There was a fall in the proportion of households in arrears during April, Your Move Scotland found.

The 10.1% figure is lower than the 10.7% recorded in March and demonstrates an improving position among renters.

On an absolute basis, the number of households in serious arrears - defined as two months or more - was 9,934 this month.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon

    Grateful thanks to the SNP for frightening away many landlords with their crazy December 2017 PRs legislation., allowing tenants to dictate when they leave. Market forces have since caused rents to soar with one flat now getting £2100 per month (about 10% yield) compared to £1500 just 2 years ago, others now getting £1500 compared to £900, again about 10% yield now, or 300% yield based on my original £6000 10% deposit about 20 years ago.


    Is this the way BTL will be heading in England ? yes please bring it on.


Please login to comment

MovePal MovePal MovePal
sign up