Rental yields for landlords in Scotland solid and reliable, latest index suggests
Rents across Scotland increased 0.6% year on year and 0.2% month on month to an average of £570 in March 2018, the latest index shows, with yields outperforming other parts of the UK.
The biggest growth was in the Highlands and Islands while the largest monthly rents are in Edinburgh and the Lothians at £668, according to the Your Move index. While the East of Scotland has the cheapest rents at £533 per month.
But there are considerable regional variations across Scottish lettings market. In the Highlands and Islands typical rents in March were 11.1% higher than a year ago at £656, the second most expensive.
In Edinburgh and the Lothians rents increased by 2.6% year on year while Glasgow and Clyde also saw rises in average rent levels, with the typical property now let for £584 following a 3% price increase in the last year.
The data also shows that Scottish returns for landlords outstrip England and Wales. The average Scottish property generated a yield of 4.7% in the year to March, exactly the same as the previous month, but down slightly on the 5% in March 2017.
But this is still higher than the England and Wales average yield of 4.4% in March. The only regions of England to post stronger yields than the Scottish figure were the North East at 5% and North West at 4.9%.
Brian Moran, lettings director of Your Move Scotland, said that the Scottish rental market has been solid and reliable in the last 12 months, and this will appeal to investors in a world where so many other asset classes are proving volatile.
‘The returns delivered to landlords remain very competitive, especially when compared to those in England and Wales. This stable outlook will encourage landlords to invest again in the market, as well as in the properties they already own,’ he added.