Certain areas of Scotland are seeing a change in rental market growth, according to the latest Scotland Buy-to-Let Index from Your Move.
In relation to rent rises, Glasgow and Clyde have seen the fastest rate of increased during November 2018. This has knocked the Highlands and Islands from their previous place at the top, after a long period of leading the Scottish rental market.
Your Move’s data has noted a 14.1% increased in rent prices within Glasgow and Clyde areas in the year to November 2018. However, it has been highlighted by Govan Law Centre that these increases may not all be legal. The 2017 introduction of the Private Residential Tenancy (PRT) means that landlords in Scotland can no longer increase rents more than once a year, and must provide three months’ notice. Govan Law Centre has witnessed cases stating that landlords have not been adhering to this new legislation.
Typical rent prices in Glasgow and Clyde are now at £616 per calendar month (pcm), which is still less than you would expect to pay in the Highlands and Islands, where rent prices have now reached £699 pcm. However, growth sits slightly lower, at 13.1% in the latter area, but it is still the most expensive location to rent in Scotland.
Brian Moran, lettings director at Your Move Scotland, has said: “Despite stellar growth in the Highlands and Islands, the Glasgow and Clyde region was able to post stronger rent increases in the last year.”
Rent hikes have not hit all areas of Scotland quite so high, with Edinburgh and Lothians seeing an increase of 3.1% in the last year. Prices in the capital city are now at £687 pcm.
In the South of Scotland and the East of Scotland there has actually been a drop in prices. The South of Scotland has decreased by 4%, with an average rent of £535 pcm. The East of Scotland has decreased by 1.7%, with an average rent price of £530 pcm.
Looking across all regions of Scotland, the average rent reached £574 pcm in November, showing an increase of 0.4% year-on-year.
Moran also commented: “Sadly for landlords, average returns have declined slightly, but the Scottish rental market continues to offer favourable returns compared to those in England.
“Tenant arrears have fallen once again, suggesting that renters are in a much better financial position than in recent months.”
Your Move has received reports that a 4.6% average yield was obtained by landlords in Scotland, in the same month, which is slightly down from the previous month’s 4.7%. However, it does remain higher than the average England and Wales yield of 4.4%.