Following a prolonged period of strong growth, the Highlands and Islands region has been replaced as Scotland’s fastest growing rental market.
According to the latest Scotland Buy to Let Index from Your Move, Glasgow and Clyde posted the fastest rent rises in November 2018, toppling the Highlands and Islands, which has long led the Scottish rental market.
Prices in the Glasgow and Clyde areas increased by 14.1% in the year to November 2018, Your Move Scotland found. A typical property in the area now rents for £616 per calendar month (pcm).
Rents in the Highlands and Islands area grew by 13.1% in the last year to reach £699pcm, the survey reported. It remains the most expensive place to rent in Scotland.
Brian Moran, lettings director at Your Move Scotland, commented: “Despite stellar growth in the Highlands and Islands, the Glasgow and Clyde region was able to post stronger rent increases in the last year.”
Edinburgh and Lothians was the third and final region to see rents increase. Prices in the capital city rose by 3.1% in the last year and now stand at £687pcm.
The South of Scotland and the East of Scotland were the only two regions to see prices fall on an annual basis, dropping by 4% and 1.7% respectively. The average property in the South of Scotland now lets for £535pcm, while in the East of Scotland this figure is £530pcm.
When all regions are considered, the average rent in Scotland hit £574pcm in November, which is up 0.4% year-on-year.
According to Your Move, landlords in Scotland achieved a 4.6% yield on average on their properties, down from 4.7% a month earlier, but still a higher return than the average yield of 4.4% in England and Wales.
“Sadly for landlords, average returns have declined slightly, but the Scottish rental market continues to offer favourable returns compared to those in England,” said Moran.
He added: “Tenant arrears have fallen once again, suggesting that renters are in a much better financial position than in recent months.”