Mortgages  

Split emerges in the Scottish rental market

Split emerges in the Scottish rental market

A split has emerged in the Scottish rental market, with three regions posting strong growth as two areas of the country record a decline in rental prices.

Latest data from Your Move Scotland has found that prices in Edinburgh and Lothians, Glasgow and Clyde, and Highlands and Islands regions all grew year-on-year.

However, the average prices in the East and South regions declined in the same time period.

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The average rental price across all areas of Scotland increased by 0.1per cent in the last 12 months to reach £572, seasonally adjusted, while on a non-seasonally adjusted basis, the average rent this month was £570.

Brian Moran, lettings director for Your Move Scotland, said: “There are still strong variations in rents across the different areas of the nation.

“The major cities of Edinburgh and Glasgow continue to post price rises while more rural areas have gained less traction.

“Despite these regional differences, the Scottish rental market as a whole continues to offer much higher returns than much of England and Wales.”

The strongest growth was seen in the Highlands and Islands, where prices have grown by 10.9 per cent in the last 12 months. The average price in the region now stands at £668.

Close behind was the Glasgow and Clyde region. Here, the average property now lets for £598 per calendar month, following growth of 9 per cent in the last year.

The final area to post an annual price increase was the capital city. In the Edinburgh and Lothians region, there was an average price increase of 2.9 per cent in the year to June.

The typical property in this region now stands at £680 and is the most expensive place to rent in Scotland.

While three of the five Scottish regions saw prices grow, the other two saw slight falls in average rents. In the East of Scotland, rental prices fell by 2.5 per cent year-on-year to hit £527.

The other fall was in the South of Scotland, the average property in this area now lets for £547 following a fall of 3.9 per cent in the last year.

The East and South of Scotland remain the cheapest places to rent in the country, with the gap between these and the other regions widening.

Greig Oliver, buy-to-let property investment specialist, tweeted in response to the Your Move figures: "Good rental yields and capital growth is to be found in a number of Scottish cities and towns, with ex-local authority three-bed houses doing exceptionally well."

aamina.zafar@ft.com