MAY 30, 2017 | BY A & S Property
Landlords in Scotland enjoy ‘higher returns on their investment’
Buy-to-let landlords north of the border are achieving greater returns on their investments than their counterparts south of the border, according to the latest Scotland Buy to Let Index from Your Move.
The average Scottish rental price increased by 6% in the 12 months to April, with the typical Scottish rental property letting for £574 a month, with all areas of Scotland, including Edinburgh, seeing the average rental price increase, the figures show.
Rental prices in the Edinburgh and Lothians area increased by 2% in the last 12 months to reach an average of £655 per calendar month, Your Move Scotland found.
Rental price growth in and around Edinburgh is being fuelled by a lack of suitable housing stock, especially in the city centre where demand is particularly strong.
But there was faster growth in the south of Scotland as rental value rose by 7.1% in this region in the year to April to reach an average of £564pcm.
The other region to see strong growth was the East of Scotland, where the average rent grew by 2% to reach £655pcm, supported by strong demand from families, especially in the Fife area where three and four bedroom properties were in especially high demand.
The only region to see rents fall compared to last year was Glasgow and Clyde. Prices here decreased by 1.2% in the 12 months to April 2017 and now average £570pcm.
Inverness was another area which saw a rise in demand for family properties. In the Highlands and Islands region, prices were flat compared to last year but rose 1% between March and April, faster than anywhere else in the country. The typical rent was £596pcm.
Brian Moran, letting director of Your Move Scotland, said: “Demand continues to outstrip supply in Edinburgh, with this driving the price increases in all areas of the capital. The wider Lothians area remains very popular and any property with an EH postcode is in very high demand. Prices here continue to outstrip the rest of Scotland by some margin.
“Yet Edinburgh wasn’t the area which had the fastest growth in the country. Prices in the south of Scotland have risen 7.1% in the last year, a stellar performance.
“Landlords across Scotland also continue to enjoy higher returns on their investment than their counterparts in England and Wales, with the typical property offering a 5% yield.”
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