Rise In Average Monthly Rent

22 July 2015, 08:07

The cost of renting a home has risen by just over 3% compared with last year, according to new data.

The average monthly rent in Scotland is now at a new high of £549, the latest Scotland Buy-to-Let Index from Your Move has reported.

It found that growth in Scottish rents accelerated to 3.1% in the year to June, up from 2.7% in May and 1.6% in April.

June's figure represents the fastest year-on-year increase since April 2014, when annual growth stood at 3.5%.

Landlords' total annual returns stand at 13.8% in June 2015, up from 9.5% a year previously, while there is evidence that some tenants are struggling, with 9% of all rent paid late - an increase from 8.8% in May.

Glasgow and Clyde saw the biggest boost in rents year-on-year, with typical rents up 4.6% since June 2014.

Rents in the Highlands & Islands have jumped 4.3% in the past twelve months, taking the average monthly rent to a record high of £563.

Similarly, rents in the East and South of Scotland have both reached a new peak following annual rent rises of 4% and 2.1% respectively.

In contrast, Edinburgh & the Lothians has experienced the smallest yearly increase of only 0.8%.

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.

"Greater supply of homes to let is the only way to definitively address the housing shortage and ease the financial pressure in the market.''