The rental market in Scotland remained strong in a post-Brexit referendum economy, with prices rising 4.6 per cent in the year to July, according to the latest Your Move buy-to-let index.
The data found that the average rent paid in Scotland was £574 in July 2016, compared to £549 in the same month last year, while landlords experienced rental yields of 5.8 per cent compared to 4 per cent in July 2015 and July 2014.
Your Move lettings director Brian Murphy says: “Despite murmurings of uncertainty since the EU referendum, rents have remained strong in the period since the vote.
“Relatively low house purchase prices and higher rents in many areas make Scotland a popular place for property investment.“Gross rental yields of 5.8 per cent in Scotland compare favourably with all areas of England and Wales.”
On a regional basis, the Edinburgh and Lothians area was home to the highest rents in Scotland. Properties in the capital and surrounding areas attracted rent of £639 in the month of July. This is 4.4 per cent higher than the £611 recorded in the same month last year, although slightly down on April’s average rent of £651 – the highest point of the year so far.
Across all areas of Scotland, 12.5 per cent of tenancies had arrears of a day or more, slightly higher than the 11.1 per cent recorded in June 2016, and above the level found in England and Wales for the same period (9 per cent). On an absolute basis, the number of Scottish households in serious arrears – defined as two months or more – was 13,642 in July 2016.