Highlands and Islands lead modest Scottish rent rises
Rents in Scotland have risen by less than the rate of inflation, new data from Your Move has revealed.
The study found the typical monthly rent was up by 2.5 per cent in the 12 months to October 2018, rising to £575. Overall, this meant the cost of renting was less than Consumer Prices Index inflation, but there were significant variations between the five regions the survey was split into.
In the Highlands and Islands, the cost of renting soared by 6.4 per cent, but the Glasgow and Clyde area saw a fall of 5.3 per cent, the only region to decline. This latter area, however, did see an increase of 0.3 per cent between September and October, suggesting that the slump may have come to an end.
The actual cost of renting remained highest in the Edinburgh and Lothians region, at an average of £699 a month.
Overall, landlords yields were static at 4.8 per cent in October, but down on the five per cent recorded 12 months earlier. Nonetheless, they compare favourably with the 4.4 per cent average in England and Wales. Only the north-west and north-east of England - at five and 5.1 per cent respectively - offer better returns.
Lettings director of Your Move Scotland Brian Moran said: "As we approach the end of the year, the Scottish rental market continues to perform strongly when compared with other parts of the UK. With an average return of 4.8 per cent, landlords have been rewarded with good returns throughout 2017."
A notable aspect of the survey is that the figures for rental costs are not even close to running in tandem with recent survey data on house prices. Indeed, there are some stark contrasts. For example, Hometrack's latest study indicated most UK cities have seen house prices rise by over three per cent, Glasgow among them.
While Scotland's largest city has seen house prices increase while renting gets cheaper, the reverse would seem to be true in Aberdeen. The Granite City has seen house prices fall 5.3 per cent, the worst figure in the UK. Yet it seems this trend is yet to feed through into rental prices in the north-east, despite the impact of falling oil prices.
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Image: Charles Britten30-November-17General Lettings News