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Property News > Residential rents crept up 0.2% year on year in Scotland, latest index shows
Residential rents crept up 0.2% year on year in Scotland, latest index shows
Scotland saw an average increase of 0.2% in private sector rents in the 12 months up to May 2018. However, the latest index data shows rents are up 3.1% in Edinburgh and the Lothians. According to the figures produced by Your Move, the highest monthly rent was recorded in Edinburgh at £677, with the average rent per calendar month now standing at £572. Meanwhile, the Highlands and Islands region have also experienced strong rental growth, with monthly averages now just £10 behind the capital following a 10.6% annual rise. The report suggests that potential buyers in these regions are opting for an initial period of rent in a ‘try before you buy’ approach, before settling in areas such as Elgin and Dingwall. This is resulting in an increase in demand, which now exceeds supply, according to the report. In Inverness, an influx of doctors from Edinburgh and Aberdeen to Raigmore Hospital has led to rental growth, as well as the continued inward movement of students to the University of Highlands and Islands. Rental yields are also increasing as a result of the higher demand. Meanwhile, average rents in the East of Scotland are down 1.8% in the last year to £530, making it the cheapest place to rent across Scotland. The southern region also saw prices fall by 3.5% to an average of £547. Yields for landlords were unchanged in May, remaining as they were in April at a stable average of 4.7%. The report shows this to be higher than the 4.4% average in both England and Wales, with only the North East and North West of England performing better, producing averages of 5% and 4.8% respectively. ‘Capital cities often attract people from all over the country and Scotland is no different. The lure of the big city has increased demand for properties in Edinburgh and rents have risen accordingly,’ said Brian Moran, lettings director of Your Move Scotland.He pointed out that Scotland’s other big city, Glasgow, also recorded strong growth while more rural parts of Southern Scotland saw prices cool. ‘Despite these changes, landlords across all areas of the country continue to see strong returns on their investment,’ he added.