Average property rents in Scotland have increased by 6% in the last 12 months to £574 per month with yields at a higher level than at the same point in 2016, the latest index shows.
Rental prices in London may be falling, but no such change is occurring in the Scottish capital as prices in Edinburgh continue their recent upward trend with an annual rise of 2% to £655 and a month on month rise of 0.6%.
The Your Move Scotland index report suggests that the market in Edinburgh is driven by a lack of suitable housing stock. Demand is particularly strong in the city centre, but all areas of the capital are experiencing interest.
The South of Scotland is seeing the fastest with rents up 7.1% year on year to £564 a month while in the East of Scotland rents were up 2% to £655. Families were a key reason for this growth, particularly in the Fife area where three and four bedroom properties were in especially high demand.
The only region to see rents fall year on year was Glasgow and Clyde with a decrease of 1.2% to £570 per month while in the Highlands and Islands region rents were flat compared to last year but rose 1% between March and April, faster than anywhere else in the country, to £596.
‘Demand continues to outstrip supply in Edinburgh, with this driving the price increases in all areas of the capital. The wider Lothians area remains popular and any property with an EH postcode is in very high demand,’ said Brian Moran, lettings director of Your Move Scotland.
He pointed out that while rents in Edinburgh continue to outstrip the rest of Scotland by some margin. The city was not the area which had the fastest growth in the country with rents in the South of Scotland up 7.1% in the last year.
‘Landlords across Scotland also continue to enjoy higher returns on their investment than their counterparts in England and Wales, with the typical property offering a 5% yield,’ he added.
