Rents north of the border are increasing at only two-thirds the rate of those in England and Wales, according to latest figures.
Data released by Your Move shows that Scottish rents rose by just 2.1% year on year. This was in comparison to 3.3% in England and Wales.
In addition, the figures show that annual rental growth in Scotland has slowed from the 2.1% recorded in January, but has improved from the 1.1% increase shown in February 2015.
Irony
Brian Moran, lettings director at Your Move Scotland, believes it is ironic that Scotland is seeing one the largest Government interventions in the sector when rents are rising at the slowest rate in Britain.
‘Like in any market, affordability is a fundamental check on prices. Rental arrears are a great benchmark in the market and their frequency is falling,’ he noted.[1]
Moran went on to say that the Private Tenancies Bill signed last week indicates a paradigm shift in the sector in Scotland. He feels this will introduce a new artificial influence in the market, alongside territorial supply and demand.
‘Intervention in the market has had negative side effects in the past, noticeably the abolition of tenancy fees in 2012 and it will be interesting to see how landlords recuperate and recover from this regulatory blow,’ Moran continued. ‘Anything that makes buy-to-let investment slightly harder to swallow and managing property portfolios more of a painful process for landlords risks cutting off the inflow of investment. Tenants will ultimately be the ones who feel the effect on their bottom line, if the supply of properties to let dries up.’[1]
Annual Scottish rents rises slowest in Britain
Regional rises
More figures from the report show that in the twelve months to February 2016, three out of the five regions in Scotland have seen positive yearly growth in rents. Edinburgh and the Lothians led the way, with growth of 7.7% recorded. This has taken typical rents to £644, up from £598 in February last year.
Rents in the South of the country currently stand at £515 per month, a rise from £498 twelve months ago. This 5.3% yearly rise is the second fastest increase seen in the year to February. In the Highlands and Islands, rents are 2.5% greater than one year ago, taking rents here to £554.
However, the East of Scotland has seen rents drop by 2% year-on-year. This is the fourth consecutive month of negative annual growth in the area and has taken rents to £520 per month. Glasgow and Clyde has also seen a drop in yearly rents, which have fallen by 0.8%.
[1] http://www.propertywire.com/news/europe/scotland-buy-let-index-2016032311706.html