Scottish landlords with buy-to-let properties north of the border continue to enjoy higher rental yields than their counterparts in England, according to the latest Scotland Buy-to-Let Index from Your Move.
The average rent price in Scotland hit £570 per month in March, which is up by 0.2% on a monthly basis.
The report claims that Scottish landlords continue to achieve an average rental yield of 4.7% on their properties, which is higher than the 4.4% achieved in England and Wales.
It’s only landlords with properties in the North East and North West regions of England that enjoy higher or equal returns than Scottish landlords.
Brian Moran, the Lettings Director of Your Move Scotland, comments on the findings: “It has been solid and reliable for the Scottish rental market in the last 12 months, but this will appeal to investors in a world where so many other asset classes are proving volatile.
“The returns delivered to landlords remain very competitive, especially when compared to those in England and Wales. This stable outlook will encourage landlords to invest again in the market, as well as in the properties they already own.”
There continues to be a disparity in rent prices across Scotland, however, with Edinburgh and the Lothians recording the highest rent on average, at £668 a month. The East of Scotland recorded the cheapest rents, at an average of £533 per month.
The Glasgow and Clyde area witnessed growth in the average rent price, with the typical rental property now let for £584 a month following a 3% increase over the past year.
Scottish landlords will also be pleased to learn that rent arrears levels have stabilised, suggesting that the market has found a good equilibrium for both landlords and tenants.
The number of households in serious rent arrears – defined as two months or more – was 8,217 in March.
Meanwhile, Scottish landlords are being reminded about new rules that affect the way that letting agents can conduct business on their behalf.
Moran urges: “With the Letting Agent Code of Practice introduced in January, landlords should get in touch with their current agent to check whether they are compliant with the new legislation taking effect.”