Rents in Scotland increased by average of 1.7% in year to May 2019

Rents in Scotland increased by 1.7% in the year to May 2019 with four out of five regions recording growth, taking the average to £582 per calendar month, the latest lettings index shows.

Landlords in Glasgow, Scotland’s biggest city, saw rents rise faster than anywhere else month on month, up 1.9% to £597, well ahead of the 0.2% average across the country while there was strong annual growth of 3.8% in the Highlands and Islands to £692.

On an annual basis, rents in the East of Scotland grew by 2.7% to £544 while in Edinburgh and Lothians annual growth of 1.9% took the average rent to £689. • The South was the only region to see prices fall, with the typical rental property now let for £542, some 0.9% lower than a year ago, the cheapest rent nationally.

Landlords enjoyed strong returns as yields remained at their highest level since November 2018. Yields increased from 4.6% to 4.7% in March, the first such rise for two years, and have now remained at that level for three successive months, into May.

This means investor returns continue to compare favourably to those found in England and Wales. The only two regions to offer returns higher than the Scottish average in May were the North East of England at 5% and the North West at 4.8%.

‘Although the property purchase market may have slowed in some areas, demand for rented homes continues to outstrip supply,’ said Brian Moran, lettings director at Your Move Scotland.

‘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,’ he pointed out.

‘And with landlord returns remaining strong once again, May was a positive month for the Scottish rental market,’ he added.

Posted by PropertyWire 1st July, 2019