As the dust has now settled on one of the most monumental periods in Scottish history, it seems there has been a clear and positive effect on the Private Rented Sector (PRS).
After the success of Glasgow’s Commonwealth Games, the announcement of Hampden Park as one of 13 venues for Euro 2020 and the certainty after last month’s referendum, it seems that a combination of success, hope and a banishment of doubt has continued to push Scottish rents past an all-time high recorded in August.
Interestingly enough, in the run up to the referendum the aforementioned doubt actually helped to push rents up as many Scots delayed on purchasing decisions and stayed in rented accommodation. This led to a 1.3% increase in average rents in the three months to August, according to a Buy to Let Index carried out by Your Move – thus pushing average advertised residential rents to their highest rate ever. In the Lothians – the home of Letting Solutions – the report also indicates that rents have reached a peak.
And now, a report carried out by Lettingstats (part of Scottish property portal Lettingweb) shows that < hraf="http://www.lettingagenttoday.co.uk/1012-stock-shortage-fuels-big-city-rent-rises">rents have continued to rise post-referendum and significantly on an annual basis.
Compiling data from over 350 Scottish letting agents, the report declares that average rents for two bedroom rental properties have increased by 8.6% year-on-year. In West Lothian the report points to a 3.1% increase in annual rents and average gross initial yields of 7.8% – some of the highest in the country. These figures confirm the strength of the market that we have known for many years.
These positive figures combined have prompted those at Lettingstats to revive talking about the issue of a shortage of supply of rental property to meet with the unprecedented demand.
Lettingstats’ Head of Research, Dan Cookson said: “It’s clear that for many prospective tenants there is simply not enough rented property on the market – we need to ensure that supply continues to increase to meet further growth in demand.”
So for anyone considering making a property available to let, the landscape in Scotland now seems the perfect one as rents and yields continue to increase at an impressive rate. And for landlords with a foot already in the Scottish PRS, the final quarter of 2014 could be the perfect time to expand a profitable portfolio.
For any advice on renting out your property, the team at Letting Solutions would be delighted to help, you can contact us on: 0845 520 1420. What’s more, you can find out how much your property could fetch in monthly rents using our Value My Property tool.