Glasgow records the biggest rate of growth in monthly rental rates, as property investors in Scotland see significant uplift in annual returns.
- Rental rates in Scotland are now at record rates having risen by over 3% in the last 12 months
- Investors have also seen annual returns reach 13.8%
- With a growing population and economy, Glasgow saw the biggest boost in rents across Scotland
Rental rates in Scotland have hit record levels – and this is driving returns for investors.
Last month saw rents grow by 3.1% year-on-year, the biggest acceleration for over 12 months, according to the latest data from Your Move’s Scotland Buy-to-Let Index. This has taken the average price per calendar month for Scottish tenants to a new high of £549.
Consequently, landlords saw total annual returns in June reach 13.8%, up from 9.5% 12 months previous.
Glasgow and Clyde saw the biggest growth in year-on-year returns, with typical rents increasing by 4.6% since June 2014.
Commenting on the figures, Brian Moran, Lettings Director at Your Move Scotland, said: “The volume has been cranked up in the Scottish rental market after a muted winter and a much faster beat of rent rises is now audible.
“Rents are hitting all-time local records in the parts of Scotland that have traditionally been more affordable to live, where rental prices are lower. “
At the start of the year, the Daily Telegraph named Scotland as the ‘buy-to-let destination of 2015’ following strong performance across the country, none more profound than that in Glasgow where rents grew by 11.1% between 2010 and 2014.
In recent years Glasgow has seen one of the fastest rates of job creation growth in the UK, and this has increased the demand for quality rental property in the city.
Additionally, Glasgow has a 75% undersupply of purpose-built student accommodation (PBSA) for students studying at the city’s six universities. This has placed a 30% rental premium on current PBSA stock, boosting returns for investors.