The Scottish rental market continues to boom, with rents increasing by 2.5 per cent over the last year, according to the latest Your Move Scotland Buy to Let index.
The rental market performed strongly in October 2017, with the average property let for £575 a month, a marginal increase on September’s figures.
In total four out of the five Scottish regions saw rents increase in the last year, with the fastest increases recorded in the Highlands & Islands, where rents increased by 6.4 per cent. The average property in this region is now let for £613 per calendar month.
Only the Glasgow and Clyde region saw rents drop back, falling 5.3 per cent year on year. However growth of 0.3 per cent between September and October suggest that the recent spell of price falls may be coming to an end.
Not surprisingly, Edinburgh & Lothians remains the most expensive region, with the average property let for £669 per month.
For landlords yields across Scotland remain at an impressive 4.8 per cent.
Your Move Scotland lettings director Brian Moran says: “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.”
But he added that landlords need to be aware that of some key legislative changes that are approaching.
Moran explains: “Changes to legislation mean landlords will be required to register new leases in line with the Private Residential Tenancy by 1 December.
“The Letting Agent Code of Practice also launches in the new year, which means landlords should start preparing for these changes in good time.” Letting agents will be required to join a Register of Letting Agency, and application must be submitted by September next year.
Landlords who use an agent who hasn’t complied with these new standards could face fines and criminal prosecution.