Scotland’s fastest-growing rental market unveiled
Rents rose in most areas of Scotland during the month of May, the latest figures from Your Move Scotland show, as demand in the market increased.
The research shows that Glasgow and Clyde posted the fastest rent rises in Scotland, with rents increasing by 1.9% between April and May, leaving the average monthly rent standing at £597 per calendar month (pcm).
On a yearly basis, prices in Scotland grew by 1.7%, buoyed by strong price growth in the Highlands and Islands. The average rent north of the border now stands at £582pcm.
Growth in the Highlands and Islands, where prices are up by 0.6% month-on-month to hit £692pcm, saw the region regain its position of most expensive place to rent in Scotland. This follows an average price rise of 3.8% in the last year, faster than anywhere else.
On an annual basis, four of the five regions surveyed saw prices rise. In the East of Scotland prices grew by 2.7% to reach £544pcm while in Edinburgh and Lothians annual growth of 1.9% left prices standing at £689pcm.
The South, which remains the cheapest place to rent a property in the country, was the only region to see prices fall, with the typical rental property now let for £542pcm, down 0.9% year-on-year.
Brian Moran, lettings director at Your Move Scotland, commented: “Although the property purchase market may have slowed in some areas, demand for rented homes continues to outstrip supply.
“This was seen most strongly in the Highlands and Islands region, where prices have leapt in the past year.
“Scotland’s major cities of Edinburgh and Glasgow showed impressive monthly figures, demonstrating the enduring popularity of these areas.”
According to Your Move, landlords in Scotland achieved a 4.7% yield on average on their properties, the same level since March, which is a higher return than the average yield of 4.3% in England and Wales.
The only two regions to offer returns higher than the Scottish average in May were the North East at 5% and the North West at 4.8%.
Moran added: “With landlord returns remaining strong once again, May was a positive month for the Scottish rental market.”