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TODAY'S OTHER NEWS

Strong and stable market ‘could convince many to expand their portfolios’

Buy-to-let landlords north of the border continue to achieve higher returns on their property investments than their counterparts south of the border, according to the latest Scotland Buy to Let Index from Your Move.

The average Scottish rental price increased by 1.7% in the 12 months to February to hit £579 a month, but this masks wide variations between the five Scottish regions monitored by the index.

Edinburgh and Lothians is currently the most expensive region, with the average monthly rent in the Scottish capital stood at £699, up 5% year-on-year.

Four of the five regions in Scotland posted rental price rises in the 12 months to February 2019, Your Move Scotland found.

The best performance came in the Highlands and Islands region, where prices increased by 7.3% in the last year. The average price in this region now stands at £691 a month.

The third region to post a significant price increase was Glasgow and Clyde. The average rent was £604 a month by the end of February after prices grew by 5.6% in the past year.

There was more modest growth in the East of Scotland, but recent falls in rents were turned around this month. The average price nudged up 0.7% in the last year to reach £538 a month.

Meanwhile, the south of Scotland has become the cheapest place to rent a property in the nation, after prices dropped 2.4% year-on-year. The average rent in the region now stands at £534.

According to Your Move, landlords in Scotland continue to achieve a 4.6% yield on average on their properties – a higher return than the average yield of 4.3% in England and Wales.

Only landlords with properties located in the North East and North West regions of England enjoyed higher returns than the average in Scotland.

Brian Moran, lettings director at Your Move Scotland, commented: “Our figures demonstrate that for those owning rental property returns can be good.

“With more families appearing to be looking to rent, larger family homes represent an increasingly stable option for landlords.

“It is little wonder that existing or prospective landlords from other parts of the UK are choosing to enter the strong Scottish rental market.

“For landlords already in the sector, an average yield of 4.6% could convince many to expand their portfolios in the near future.”

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