Scotland’s Buy to Let Market Increased by 4% in Value
Your Move Scotland has found the Scotland’s Buy to let market has increased in value by 4% in comparison to last year. It has been announced that on average Scottish property now rents for £571 a calendar month, an increase from £548 recorded at the same point a year ago. Going by region, Edinburgh and the Lothians came top of areas with the highest rent in Scotland. This is also supported by these areas seeing the strongest growth regionally than any other.
This is good news for many of Scotland’s Landlords with news of a strong rental market. East Scotland contains areas with the cheapest rent. These areas include Fife, Dundee and Perthshire, the cheapest places to rent in Scotland.
Other regions mentioned in the report was Glasgow who saw a decrease of 0.9% since January 2016. Clyde also experienced the same fall rate. The Highlands and Islands rate have the highest rental prices across all of Scotland, however they have fallen by 4.3% over the course of the year.
There have been changes to the tax system in Scotland over the past years which could have proven problematic for investors in the rental industry. However, the market has stayed stable. Other possible problems that have faced the rental market was the UK’s decision to leave the European Union, which has created a lot of economic uncertainty. However, the rental market has remained stable. This stability is reassuring for investors especially with more political uncertainty ahead.
The Buy-To-Let market in Scotland has stayed strong in comparison to property investment in other parts of the UK. However Scottish landlords have been shown to have higher returns than investors in England and Wales. However, when compared regionally, landlords with properties in the North East and North West of England have been recorded as having higher returns at 5.3% and 5% this month.
Property & Development Magazine