Taylor Scott International News
Rents in Scotland are at a record high, up 1.3% in May, the fastest month on month growth on record, according to the latest buy to let index. Across Scotland the average rent now stands at £549, led by growth in Edinburgh and the Lothians with a year on year rise of 12%, the data from the Your Move index also shows. The report suggests that the cost of the Land and Buildings Transaction Tax (LBTT) surcharge of 3% for additional homes introduced in April has pushed up prices in the market. ‘Rents are rising rapidly as a result of the new Land and Building Transaction Tax surcharge for buy to let properties. This tax hike has dissuaded landlords from investing in the sector leading to a shortage of homes to rent, compared to the demand for housing,’ said Brian Moran, lettings director at Your Move Scotland. ‘With the limited supply of rental properties, potential tenants have been forced to compete to secure homes, pushing up rents. The introduction of this anti-landlord legislation from Holyrood has ensured the cost of the policy has hit tenants hardest,’ he pointed out. He also said that the rent control policy in the Scottish Government’s private tenancies bill will affect the market and not necessarily in a positive way. ‘By limiting the rent that can be charged on a property, becoming a landlord will become less appealing, limiting investment and forcing many to consider leaving the sector. This will lead to an even greater shortage of homes to rent,’ he explained. ‘In addition, without the potential incentive of higher rents, landlords will lack the motivation and finance to improve the quality of their properties. The Government needs to look at incentivising landlords to increase the supply of rental properties in Scotland. With more homes available to rent, tenants wouldn’t need to compete for properties and rents would be more affordable,’ he added. A breakdown of the figures show that on a monthly basis, rents rose across all of Scotland’s regions in May. Glasgow and Clyde has seen the steepest uplift month on month, with rents in the region increasing 1.9% from April. This amounts to a £11 jump in cash terms, with typical rents increasing from £538 in April, up to £549 in May. The smallest monthly upswing in rents occurred in the Highlands and Islands. Rents in the region increased by just £1. With a smaller population and fewer high paying jobs than other parts of Scotland, competition for rental properties in the region has not been as fierce. In the South of Scotland, the increase in rents was also marginal, with only a 0.2% uptick leaving typical rents to standing at £514, the lowest average of any region. Meanwhile, in Edinburgh and the Lothians, rents continued their upward trajectory, rising 1.7% or £11 from April, pushing the typical rent in the region to a… Taylor Scott International
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