Scottish buy-to-let returns hit 13.8%
Data released by estate agency Your Move found that rents in Scottish market had risen 3.1% in the last 12 months, boosting profitability for landlords.
The typical return rose from 9.5% a year ago to reach 13.8%, the firm found.
The average rent charged is now at £549 per month following the fastest growth in more than a year.
On an annual basis, rents increased in all five regions of Scotland and new price records were set in the East, Highlands & Islands and the South of the country.
The Glasgow and Clyde region saw the biggest increase in June, rising 4.6% in the last year. This is equivalent to an extra £25 rent each month.
However, increasing rents did cause the level of arrears to increase slightly compared to May. The proportion of rent in arrears rose to 9.0%, up from 8.8%.
Brian Moran, lettings director at Your Move Scotland, said: “The volume has been cranked up in the Scottish rental market after a muted winter, and a much faster beat of rent rises is now audible. Rents are hitting all-time local records in the parts of Scotland that have traditionally been more affordable to live, where rental prices are lower.
“It’s not just the big urban centres of Edinburgh and Glasgow which are coming up against an urgent shortfall of housing – there is furious demand for homes to let the length and breadth of the nation, and that is underpinning this build-up in rental prices.
“The delicate market equilibrium may also be imbalanced by the ripples of the Summer Budget. With landlord’s tax relief compressed, the vital bedrock of the private rented sector – investment – could fall short of what’s required to meet the towering demand on the market.”