Taylor Scott International News
Scottish residential rental growth has almost ground to a halt in the run up to the festive holiday season with the average monthly rent up in November by 0.1% month on month. This takes the average rent to £546 per month with the data from the Your Move Scotland buy to let index showing that growth has fallen from a 0.2% rise between September and October. On an annual basis, the pace of rent rises in Scotland is also continuing to decline. November marks the fifth successive month where annual rent growth has slowed. With Scottish rents now just 1.4% higher than a year ago, the pace of annual rent rises has more than halved since the June peak when rents were up 3.1% year on year. But the headline figures disguise rises in some locations. For example, in Edinburgh and the Lothians rents increased to a new peak of £635 per month with a 0.8% monthly rise in November. The index data also shows that landlord total returns have increased to 6% across Scotland led by Glasgow and Clyde at 9.8% and the buy to let sector has seen its first fall in tenant arrears for six months. According to Brian Moran, lettings director at Your Move Scotland, the market is now set for change in 2016 with an extra 3% stamp duty tax set to be in place from April and rent control proposals looming. He reckons it will result in fewer properties available for rent which could push up prices. ‘Fresh supply is likely to be put on ice. Rents will then be ultimately be vulnerable to the shrinking pool of available homes for let. Landlords and the private rented sector have become a popular target for the Government recently but any attempts to curb investment in the private rented sector, and undermine landlords, will only have an adverse effect on tenants’ rents,’ he said. A breakdown of the index figures shows that as well as Edinburgh and the Lothians seeing growth above average, rents in the South of Scotland climbed 0.2% and those in the South were up 0.1%. Glasgow and Clyde saw the most significant monthly fall in rents, down 0.6% and the Highlands and Islands saw a 0.1% decrease in average rents since October. The picture is also mixed on an annual basis, with only three of the five regions of Scotland seeing rents increase in the past year. The Highlands and Islands saw rents rise 5.8% year on year, taking the average to £569. The next strongest annual increase was in the South of Scotland, up 3.1% and in Edinburgh and the Lothians typical rents are now 2.9% higher than in November 2014. Compared to a year ago, Glasgow and Clyde saw the biggest drop in rents, down 1.3% while average rents in the East of Scotland were down 0.1% year on year. After five months of successive rises, tenant arrears in Scotland… Taylor Scott International
Taylor Scott International, Taylor Scott
