Overall rents are flat in Scotland but Highlands and Glasgow see double digit growth
The average rent in Scotland increased by just 0.1% in the year to July 2018 to £572 but the country is seeing considerable regional variations, the latest index reveals.
Glasgow and Clyde and the Highlands and Islands achieved rent growth of more than 10%, far ahead of the remaining regions, according to the latest rental index from Your Move.
Rents increased by 11.5% in the Highlands and Islands to an average of £674 and increased by 10.3% in Glasgow and Clyde to £600.
Of the three remaining regions, one saw prices rise while there was a decline in the other two. In the Edinburgh and Lothians region there was a 3.1% increase in rents, leaving the average rent at £683.
Rents in the South of Scotland fell by 3.9% in the 12 month period, dropping to £545, while in the East property prices dropped by 2.7% to £526. The East remains the cheapest region to rent a property in Scotland.
There was a slight fall in the average returns achieved by landlords in the past 12 months from 4.9% in July 2017 to 4.7% in July 2018, the data from the index also shows.
However, despite the annual decline, the returns enjoyed by landlords in Scotland continues to compare favourably to the returns achieved in England and Wales where the average yield was 4.4% in July.
Some individual regions of England continue to post stronger returns than the Scottish average with 5% in the North East and 4.8% in the North West.
‘There are still strong variations in rents across the different areas of the nation. Despite these regional differences, the Scottish rental market as a whole continues to offer much higher returns than much of England and Wales,’ said Brian Moran, Your Move lettings director.