"Only landlords in the North East and North West regions of England enjoyed better returns – 5.3% and 5% respectively – this month. "
The latest data from Your Move Scotland has revealed that there has been a positive start to 2017 for Scottish rental market with average property in Scotland now letting for £571 per month.
According to the data, the Edinburgh and Lothians region continue to dominate the Scottish rental scene once again. Prices in the capital and surrounding areas grew faster than any other part of the country in the last year, Your Move.
Prices in this region increased by 3.3% in the last 12 months to reach £648 in January 2017. However they were absolutely flat month-on-month. The next highest rents were to be found in the Highlands and Islands region. While rents in this area stood at £584 in January, they are 4.3% lower than a year ago – the biggest faller during that period. However, they did grow 0.6% between December and January.
The only other region to post a year-on-year fall was Glasgow and Clyde where prices have ticked down 0.9% since January 2016. Properties in this region now rent for an average of £566. The cheapest place to rent continued to be the East of Scotland. Properties in this area now let for £533 per month, 1.3% higher than a year ago and up 0.4% month-on-month.
Finally, in the South of Scotland, rents grew by 2.7% in the year to January. Properties in this region are now on the market for an average of £555 a month. Across the whole of Scotland the average rent stood at £571 in January 2017, this compares to £573 last month. A year ago the average rent in Scotland was £548.
Remarkable stability for investors
Despite 2016 containing changes to the tax system for buy-to-let landlords, the UK’s vote to leave the European Union and general economic uncertainty yield levels remained steady over the year. In January 2017 the average yield was 4.9%, Your Move Scotland found. This is exactly the same as in both January 2016 and the previous month.
This yield also compares strongly to property investment in other parts of the UK. Landlords in Scotland continue to see much better returns than the average investor in England and Wales, where the average yield in January stood at 4.6%.
Only landlords in the North East and North West regions of England enjoyed better returns – 5.3% and 5% respectively – this month.
Arrears levels remain flat
Tenant arrears increased slightly following the Christmas period, Your Move Scotland found. Across all of Scotland some 11.75% of tenancies had arrears of one day or more during January 2017. This is higher than the 10.8% rate recorded in November 2016.
Scotland’s arrears rate for this month remains above the level found in England and Wales. Across those two nations the average rate of arrears was 9.1% during January.
On an absolute basis, the number of Scottish households in serious arrears – defined as two months or more – was 10,413 in January 2017.