As summer comes to an end, the latest figures for the Scottish rental market are extremely positive, which suggests that now may be as good a time as any to become a landlord or for existing Scottish landlords, a fantastic time to expand a rental portfolio.
The most significant figure, taken from the Homelet Rental Index for July, is that average private rents in Scotland were 10% higher last month than in June – and this is compared to just a 4.4% rise across the UK as a whole.
Broken down, according to the Index, the average monthly rent across the whole of Scotland was £636 in July, compared to £576 in June and £627 in July 2013, an annual increase of 1.4%.
Commenting on the report, Martin Totty CEO of Barbon Insurance Group described Scotland’s rental market as ‘one to watch’ and here at Letting Solutions we would be inclined to agree.
Backing up these figures are another set of statistics released by Your Move which suggest that since the banning of tenant fees in November 2012, average annual monthly rents have increased at a rate of 2.3% per year.
Taking into account price growth alongside void periods, Your Move calculates the total return for an average property to let in Scotland to stand at 9.9% in the 12 months to July, up from 2.4% in July 2013.
Now, while these figures are a good way of gauging the general mood and conditions of the Private Rented Sector, they should not be taken as read. We believe that the best way to find out about your specific local market, in West Lothian for example, is to speak to a local letting agent or property expert.
If you’re thinking about renting out your property, find out how much you could earn in monthly rents using our online free property valuation tool. Additionally, for any advice on the Scottish rental market, please contact us on: 0845 520 1420.