Yields for landlords in Scotland have risen for the first time since March 2017, increasing by 4.7 per cent in the year to March 2019, according to Your Move.
In the same time frame the rental price in Scotland rose 1.8 per cent, to reach an average of £580.
On a regional basis, four of out five regions rose, with the Highlands and Islands region posting the largest rise, increasing 4.9 per cent annually. This was followed by Edinburgh and Lothians which rose 4.6 per cent – leaving average rents at £688 and £699 respectively.
In contrast, rental prices in the South of Scotland fell year-on-year, dropping 1.9 per cent to leave average rents at £537.
However, month-on-month the South of Scotland led the way in terms of growth, increasing 0.6 per cent. This was followed by the East of Scotland, where prices rose 0.5 per cent.
Meanwhile, the largest decline was recorded in Glasgow and Clyde, where prices fell 2.5 per cent month-on-month. This was followed by the Highlands and Islands, falling 0.5 per cent.
Furthermore, tenant arrears rose marginally, from 10.5 per cent recorded in February, to 10.7 per cent last month.
The number of tenants in serious arrears in March was 8,283.
Your Move lettings director Brian Moran comments: “Investors in Scotland have seen stronger returns this month than in February.”
“This is the first rise in monthly yields since March 2017 and demonstrates why many investors from elsewhere are now looking towards Scotland to maximise returns.
“Additionally, with more tenants now renting for longer thanks to the introduction of the PRT, landlords are benefitting from the increased security and stability provided by these tenancies.”