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Buy to Let

Scottish renters hit by record rise

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
24/06/2015

Monthly rents in Scotland have risen at a record rate, pushing prices to an all-time high.

Figures released by estate agency chain Your Move found prices had growth by 1% in the month of May, the largest rise the survey has found.

This took the average rental prices to £544 per month, also the highest ever recorded.

This rise was driven by strong price growth in southern areas of Scotland, where prices grew by an average of 1.9%. This is still the cheapest area of the nation to rent, with an average of £510 per month.

Edinburgh and the Lothians remain the most expensive place to rent in Scotland, with an average property costing a tenant £593 per month.

Across Scotland, rents are now 2.7% higher than a year ago.

The proportion of renters in arrears dropped between April and May – falling from 9.2% to 8.8% of all tenancies.

Brian Moran, lettings director at Your Move Scotland, said: “The Scottish rental market has finally shed its winter coat, and is starting to emerge brighter-eyed and bushy-tailed for the summer months. Growth has more than doubled since March, when annual rent rises were only 1.3%.

“To put this into context, we’ve just turned a full circle. After a downtrend in rent growth over the winter months, we’re now back on par with the rate of rises a year ago. In fact, at the same time last year, rents were rising at a moderately faster pace, with 2.8% annual growth in May 2014.

“Affordability is one of the main handicaps reining back private sector rents from rising even faster, but with recent boosts to wage growth, most household incomes are weighing in higher, and tenants can finally afford to pay more.

However, this needs to go hand-in-hand with supply. With a strong economy and sturdy jobs market, demand for homes to let is standing tall. The stock of available housing needs to rise to match this level to maintain the delicate balance with rent rises, and tenant incomes.”


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