Buy-to-let landlords in Scotland continue to achieve higher returns on their property investments than their counterparts south of the border, the latest Scotland Buy to Let Index from Your Move shows.
The average Scottish rental price hit £570 a month in March, which is up 0.2% month-on-month.
According to Your Move, landlords in Scotland continue to achieve a 4.7% yield on average on their properties – a higher return than the average yield of 4.4% in England and Wales.
Only landlords with properties located in the North East and North West regions of England enjoyed higher or equal returns than those in Scotland.
Brian Moran, lettings director at Your Move Scotland, said: “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 prices in the different regions of Scotland, with the Edinburgh and Lothians recording the highest rents at £668 a month. The East of Scotland has the cheapest rents at £533 per month.
The Glasgow and Clyde area also saw rises in average rent levels, with the typical property now let for £584 a month following a 3% price increase in the last year.
Landlords north of the border will be pleased to learn that arrears levels have stabilised, suggesting that the market has found a good equilibrium for both tenants and landlords.
On an absolute basis, the number of households in serious arrears - defined as two months or more - was 8,217 during March.
Landlords in Scotland are being reminded about new rules which affect the way letting agencies are able to conduct business on their behalf.
Moran added: “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.”
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