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Scottish Property Rents “Reach New Peak.”

According to new figures, the average price of renting a property in Scotland has reached a new peak, with rental prices rising by 1% in the last month.

The figures, which came courtesy of Your Move showed that rental prices on average across Scotland were as high as £544 per month. While rents in Glasgow and other areas of Scotland increased, according to Your Move, the authors of the report insist that the rise was due to a surge in the price of rents in Southern Scotland.

Since the turn of the year rents across the country have increased by 0.1% per month, with a 2.7% rise in rent on average in the last year, the fastest increase since August last year.

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.”

Property in Glasgow

Despite rents increasing in the last year across Scotland and in the South, rents in Glasgow saw the biggest movement in rental prices with an increase of almost 6%, with the typical rent in Glasgow being significantly higher than in the vast majority of other areas in Scotland. Conversely, rents in the capital fell by 0.6%.

The latest figures show that as of May 2015, the average gross yield on a rental property in Scotland was 3.6% a meaning that including property price growth and other factors, the average total annual return on a buy to let property in Scotland stands at 17.3%.

This shows the advantage of buying properties and leasing them, especially in areas such as Glasgow were rent is typically higher, and properties are more in demand. According to the study’s figures a landlord in Scotland could see a return of over £27,000 before any mortgage payments or maintenance costs.

Brian Moran of Your Move said: “Double digit total annual returns are a great bonus for existing Scottish property investors, and put them head and shoulders above their counterparts south of the border, with returns in England and Wales currently standing at 9.5%.
“Gross yields in Scotland have slipped back slightly as a side effect of the recent property price bump and fervent activity in the Scottish housing market, as the new Land and Buildings Transaction Tax comes into play.

“With rent rises gathering pace, the case for investing in buy to let is still shining brightly. This inflation of rental income ensures a good cushion for landlords, ensuring a smooth ride over any fluctuations over longer term property price gains.”

Buying a Property in Glasgow

While many people opt to rent a property, many areas in Glasgow are fast becoming prime areas for investment. With many areas experiencing regeneration following the Commonwealth Games and many areas becoming more desirable with new properties and schools being built, buying a property in Glasgow could be a very wise investment. Our numerous property guides focus on areas that are perfect for first-time buyers, families or on areas that are up-and-coming in Glasgow can be found on our property guide page.

Contact Us

Our team of solicitors know what is required to buy a property and know Glasgow. To find out more about buying a property or investing in the property market in or around Glasgow, contact us today using our online contact form or call our team of solicitors on 0141 530 1193.