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Boost for West Lothian landlords as rents rise on a monthly basis

After another busy autumn period the local rental market remains in rude health as landlords continue to benefit from a shortage of rental property stock.

In fact, according to new research, the average residential rent in Scotland is now 1.6% higher than 12 months ago. This means the typical landlord is generating an additional £9 per tenant, per month when compared with October 2014.

Regionally speaking, rents were higher year-on-year last month in every region except Glasgow and Clyde. Here at Letting Solutions, we’re pleased to see that in Edinburgh and the Lothians annual rental growth rose from 2.0% in September to 2.5% in October, which means that rents are now 15% higher in these areas than they were a year ago.

Letting Solutions November Blog 2

What’s more, the urban centres of Edinburgh and the Lothians have witnessed the greatest month-on-month rises, with rents increasing by 1.1% since September. This is in line with a countrywide trend, which saw residential rents across Scotland increase by 0.2% between September and October 2015. This was also the first month-on-month rise in Scottish rents since July, highlighting that growth is starting to recover after a summer and autumn dip.

As things stand, the average monthly rent in Scotland is £546, £1 higher than the previous month in cash terms. It means that landlords in West Lothian can be confident about receiving a good level of rental income and, in turn, achieving some excellent yields on the property they let.

The average gross yield on a Scottish rental property, as of October 2015, was 4%, in line with the previous month. Gross yields have also held steady since October 2014, despite the implementation of the new Land and Buildings Transactions Tax.

A typical landlord in Scotland has seen a return, before mortgage repayments or maintenance costs are taken into consideration, of £8,000 in the last 12 months. This sum is largely made up from rental income (£5,900), while capital appreciation on buy-to-let property typically amounted to £2,100 in the last year.

Assuming house prices continue to grow at the same rate as we’ve seen over the last three months, the average buy-to-let investor in Scotland can expect to make an overall annual return of 9.8% in the next year. This is equal to £15,900 per property – pretty good going by anyone’s standards!

At Letting Solutions, West Lothian’s first dedicated letting agents, we are experts in the field and can offer tips and advice to landlords on how to make the absolute most from their rental properties.

Please give us a call on 01506 496006. In addition, if you would like to know the value of your rental property in the current marketplace, check out our handy instant online valuation tool.