Rents in Scotland on the rise
Figures are out that show that the average rent in Scotland for residential property have risen by just 1.3% in the last 12 months, but in the East of Scotland they have increased by 3.2% over the year possibly due to the oil exploration factor. Even after these increases the increases are just half of those seen in England and Wales, according to the latest sector index.
The latest increases mean that since the elections to the Scottish Parliament in 2011, rents are now 5.3% higher. Contrast that with residential rent in England and Wales which has grown 9.6% since the time of the Scottish elections, highlighting that Scottish tenants are having a much easier ride than those in England and Wales. On another note the largest letting agent networks for Scotland showed that over 7% of tenants are late paying their rents.
From what can be seen, in spite of a snowballing demand for homes to let in Scotland, the private rented sector has managed to ensure that tenants are being protected from the worst extremes of rent inflation, which have trailed the inflation index. In Scotland as elsewhere, housing is an area which affects us all, and ahead of the forthcoming election in May, tenants will naturally be keen to hear of any possible changes to legislation that concerns the renting sector. Naturally homes to let are an important part of the demand for homes and landlord confidence is vital if we are to tackle the housing shortage and a sensible return on investment for landlords is essential.
The average Scottish landlord has seen a return, before any mortgage payments or maintenance costs, of £11,175 over the 12 months to January. On the basis that the value of rental properties does continue to climb at a similar rate to that of the last three months, then the average buy to let investor in Scotland, should make a return annually of in the region of the 5.6% mark or about £8,918 per property.