Scottish property investment yields average 7.2%
03-02-2015
Three in five Scottish regions have seen growth as the average yield on Scottish property reached 7.2% for the 12 months before January 2015.
Summary:
• Residential rental rates in Scotland have increased by 1.3% over the last 12 months
• Three out of five Scottish regions have seen rental growth
• The current average yield on rental property in Scotland was 7.2% in the 12 months up to January 2015
Latest figures suggest that residential buy-to-let property investment returns in Scotland have increased by 1.3% over the last 12 months.
Findings by the Scotland Buy to Let Index from Your Move, one of Scotland’s largest lettings agent networks, now puts the average rental price at £536 per calendar month. This means that the average monthly rental prices in Scotland are now 5.3% higher than at the time of the previous elections to the Scottish Parliament in May 2011.
The index report calculated that, for the 12 months up to January 2015, the current average yield on rental property in the country was 7.2%.
Breaking down the figures, three out of five Scottish regions have seen rental growth. In particular, the east of Scotland saw rates reach a record high with a 3.2% year-on-year increase, while in Glasgow and Clyde there was an increase of 1.3%.
The growth north of the border is representative of what is happening in the UK as a whole. However, Brian Moran, Area Lettings Director at Your Move, said of Scotland: “Despite snowballing demand for homes to let, the private rented sector has managed to shelter tenants from the worst extremes of rent inflation, and rents have navigated an affordable route broadly trailing inflation.”
These findings follow research earlier in the month that identifies Scotland and Northern Ireland as, currently, the top UK property investment locations, with more buyer enquiries and stronger price growth figures than anywhere else in Britain.