Rents in the private sector lettings market in Scotland were largely unchanged in the 12 months to August 2018 year on year, at an average of £572 per calendar month, the latest index shows.
Overall, rents fell by 0.1% compared with August 2017 but there was some regional variations with growth led by the Highland and Islands, according to the data from the Your Move index.
Along with the Highlands and Islands, rents also increased in Glasgow and Clyde, and Edinburgh and the Lothians. Rents were up 13.3% in the year to August in Highlands and Islands to £684, making it the most expensive place to rent, overtaking Edinburgh and the Lothians.
Indeed, in Edinburgh and the Lothians rents increased by a more modest 2.4% year on year to an average of £682 while in Glasgow and Clyde rents increased by 9.5% to £602.
Meanwhile, rents in the South of Scotland fell by 4.1% to £542, while in the East rents dropped by 2.4% to £527, making it the cheapest region to rent a property in Scotland.
Yields average 4.7% in August, unchanged from the previous month but lower than the 4.9% recorded in August 2017. Despite the annual decline, the returns enjoyed by landlords in Scotland continues to compare favourably to the average yield of 4.4% in England and Wales.
‘Following increased demand and strong price growth, the Highlands and Islands became the most expensive place to rent a property in Scotland this month. It displaced Edinburgh and the Lothians as the highest priced region, although this area also experienced solid growth,’ said Brian Moran, lettings director of Your Move Scotland.
‘Overall the Scottish rental market is flat compared to last year, but landlords can benefit from improving tenant finances. Property investors continue to see yields which are better than the majority of regions in England and Wales,’ he added.
