Residential rents in Scotland rose in all regions during March, driven by demand for family homes, according to the latest Buy-to-Let Index from Your Move Scotland.
A yearly rise of 3.8% year-on-year has seen the average rent in Scotland increase to £565, with rents rising fastest in the Highlands and Islands region.
In this region, rents grew by 0.8% between February and March, while in the South, they increased by 0.5%. This rise was driven by demand for family properties, with three and four bed properties being more sought after.
The South of Scotland saw rents increase fastest on an annual basis, with an increase of 5.9%. However, the other regions of the country saw a mixed bag.
In the East, rents rose by 2.4%, while in Edinburgh and the Lothians they increased by 2.3% year-on-year. On the other hand, rents fell by 3% in Glasgow and Clyde and by 1.9% in Highlands and the Islands.
Highest rents in Scotland are seen in Highlands and Islands, where a typical property costs £690 per calendar month. Average rents in Edinburgh and the Lothians stand at £651.
At the other end of the scale, the East of Scotland is the cheapest region, where average rents total £536 per month.
Uncertainty surrounding another independence referendum is doing little to destabilise the rental market, according to Brian Moran, lettings director at Your Move Scotland.
‘March saw a stellar performance across Scotland as every single region recorded higher rents than the previous month. Demand is increasing in segments of the market such as family homes, showing there is room for expansion of the rental sector,’ Moran observed.
‘This increased demand is being seen in areas such as the Highlands and Dumfries, suggesting the rental sector is extending beyond the big cities. Yield levels have actually increased this month, bucking the trend seen in the rest of the UK. This shows Scotland remains a great place to invest, as well as a great place to live,’ he continued.