AUGUST 03, 2017 | BY A & S Property
Landlords south of the border ‘will be envious of the Scottish market’
Landlords north of the border continue to enjoy a higher yield on their properties than those in England and Wales, according to Your Move Scotland.
According to the letting agency, landlords in Scotland are now achieving a 4.9% yield on their properties – a much higher return than the majority of rental properties in England and Wales, where the average yield is 4.4%.
Only landlords with properties located in the North East and North West of England saw higher or equal returns compared to those in Scotland.
The average Scottish rental property let for £569 a month in June, up 1.4% on the previous month.
This is also 1.8% up compared with same month last year.
But with rents in Scotland continuing to rise, more tenants are falling into arrears, the figures show.
The number of tenancies falling into arrears of one day or more increased by 6% in a month while rental prices rose by 1.8% year-on-year.
The most expensive rents in Scotland are in Edinburgh and the Lothians, where the average now stands at £661 per month, an increase of 3.5% on last year’s figure of £639pcm.
The Highlands and Islands was the only other area north of the border to record rents above the £600pcm mark, with the average price now stood at 602pcm, an increase of 2.9% year-on-year.
Brian Moran, letting director at Your Move Scotland, said: “Slow and steady is the name of the game in Scotland. While the political landscape has changed dramatically the rental market continues its solid progress.
“Rents across Scotland are now 1.8% higher than a year ago, and have risen by 1.4% in the last month alone.
“Landlords are enjoying excellent returns on their investment, with the typical property returning 4.9% to owners - a strong performance in today’s economic context.
“Landlords south of the border will be envious of the Scottish market, as returns are much stronger than in most regions of England and Wales.”
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