Landlord yield returns on property investment in Scotland have remained solid over the last year despite yields across England and Wales tightening their margins.
Scottish landlords continue to enjoy strong returns on their investment, with the average property offering a return of 4.9 per cent. This figure remains steady year on year.
There has also been a sharp incline in average rental prices in Scotland, up 1.8 per cent in comparison to June 2016. The typical property let for £569 per month during June 2017, up 1.4 per cent on a monthly basis. The Edinburgh and the Lothians region offers the highest rents in the country, with the average rent at £661 per month.
However, tenant finances have not fared so well. 18.3 per cent of Scottish tenancies had arrears of a day or more during June 2017. This marks a sharp increase on the 12.3 per cent recorded just last month, suggesting a deterioration in tenant finances between May and June. Scotland’s arrears rate for this month stands above the level found in England and Wales. Across both nations the average rate of arrears was found to be 7 per cent this month.
Lettings Director, Your Move Scotland, Brian Moran, commented: ‘Slow and steady is the name of the game in Scotland. While the political landscape has changed dramatically the rental market continues its solid progress. Rents across Scotland are now 1.8% higher than a year ago, and have risen by 1.4 per cent in the last month alone. Landlords are enjoying excellent returns on their investment, with the typical property returning 4.9 per cent to owners – a strong performance in today’s economic context. Landlords south of the border will be envious of the Scottish market, as returns are much stronger than in most regions of England and Wales.’