DECEMBER 24, 2014 | BY A & S Property
Scottish rents hit all-time high
Rents in Scotland have crept up to an all-time peak, despite an overall cooling in annual growth this year, according to the latest Scotland Buy-to-Let Index from Your Move.
The average residential rent in Scotland now stands at £539 per month, the highest level on record. This follows a 0.2% rise (equivalent to £2) in the month to November.
But on an annual basis, rent rises are stabilising after a slowdown in growth. Average monthly rents across Scotland have climbed 2.2% over the past year, consistent with the annual growth recorded last month. The average monthly rent has increased £12 from £527 in November 2013.
This shows a considerable slackening from 3.5% annual rise over the year to November 2013. At their fastest pace, annual rent growth reached 4.3% in February 2014.
Christine Campbell, regional managing director of Your Move, comments: “Scottish rents have been steadily edging forwards, and despite only taking baby steps, they reached a new pinnacle in November. Demand and supply are still out of kilter, and in highly sought-after employment and cultural nerve-centres like Edinburgh, this overflowing competition for homes to let has topped up rent prices. But the outlook has shifted starkly from the start of this year, and annual rent rises have been trimmed back to healthier levels, as usual market forces check the rate of growth. In real terms, average rents across Scotland are only 1.2% higher than they were a year ago.
“Speculation over how future rental caps or more stringent letting controls may disorientate the stable direction rents are currently moving in, and any off-piste spike in rents would hurt thousands of households who depend on private rented accommodation. Renters rely on landlords too. Increased investment into the sector is the only way to alleviate the strain of the current housing shortage and soothe competition for rental homes.
“If buy-to-let investment dries up, and the pool of properties to let contracts, rents will swallow the shortfall and eat into tenant finances.”
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