Landlords in Scotland continue to enjoy strong returns on their investment, with the average property returning 4.9% to investors, exactly the same as a year ago.
The average rental price in Scotland has also risen solidly in the last 12 months. The typical property let for £569 per month (not seasonally adjusted) during June 2017, 1.4% higher than the previous month. This is also 1.8% up compared to last June, when the average monthly rent stood at £559.
The Edinburgh and the Lothians region continues to boast the highest rents in the country, with the average rent being £661 per month.
At the other end of the scale, the East of Scotland - including major hub Aberdeen - is currently the cheapest place to rent in the nation. The average property here lets for £541 per calendar month.
On a monthly basis prices increased in most regions of Scotland. The Edinburgh & Lothians region saw rents increase by 0.8% - faster than anywhere else.
The South and East of Scotland both saw rises between May and June, at 0.4% and 0.1% respectively.
However rent rises have also equated to worsening tenant finances. Across the entirety of Scotland, some 18.3% of tenancies had arrears of one day or more during June 2017. This is higher than the 12.3% recorded last month, suggesting tenant finances have deteriorated between May and June.
Scotland’s arrears rate for this month remains above the level found in England and Wales. Across both nations the average rate of arrears was 7% this month.
Brian Moran, Lettings Director, Your Move Scotland, commented: “Slow and steady is the name of the game in Scotland. While the political landscape has changed dramatically the rental market continues its solid progress. Rents across Scotland are now 1.8% higher than a year ago, and have risen by 1.4% in the last month alone.
“Landlords are enjoying excellent returns on their investment, with the typical property returning 4.9% to owners - a strong performance in today’s economic context.
“Landlords south of the border will be envious of the Scottish market, as returns are much stronger than in most regions of England and Wales.”