Glasgow dominates as the ideal investment location in Scotland for landlords. One of the latest data from Your Move Scotland reports that landlords in Glasgow, between April and May saw a faster rise in rent than in any other place. According to the report, the rental prices in Glasgow and Clyde increased by about 1.9% month-on-month. This is far much ahead of the 0.2% average that’s realized across Scotland.
Scotland Rental Prices
Rental prices in Scotland have on a yearly basis increased by 1.7%. This is mainly due to the strong price growth in the Highlands and Islands. The average rent within Scotland now stands at £582 although it’s adjusted seasonally. On a non-seasonally adjusted basis, the average rent stood at £589 in May. During the month of May, rent rose in most of the areas within Scotland as the market demand also increased.
When evaluated on a monthly basis, it’s Glasgow and Clyde that reported the strongest increase in prices as the average rent increased by 1.9% between April and May. The move kind of reversed a recent trend of falling rents within the city as the average rent stood at £597. Such a move helped in placing ahead of the Islands and Highlands as prices increased by 0.6% on a month-to-month to reach £692.
Why Glasgow Dominates
The region has so far regained its position as the most expensive place to rent in Scotland. This comes after an average price rise of 3.8% that was realized last year and is faster than any other place. On an annual basis out of the five regions surveyed, four of them saw a rise in prices. The East part of Scotland experienced a rise in price at 2.7% to reach £544. The annual growth realized in Edinburgh and Lothians of 1.9% left the average rental prices standing at £689.
The South is the only region that experienced a fall in the prices as the typical rental property now going at an average of £542 which is 0.9% lower than a year ago. It also remains the cheapest place to rent property in the country.
On a national basis, there has been an increase in the average Scottish rental price by 1.7% over the year to May. The average now stands at £582 each month as seasonally adjusted. The figure is about 0.2% higher than that of a month ago. The non-seasonally adjusted rental average was at £589.
Here are some of the reasons why Glasgow dominates the Scottish rental market;
Encouraging trends for landlord returns
According to a report by Your Move Scotland, landlords continue to enjoy strong returns. This is because yields have remained at their strongest level since the month of November 2018. There has been an increase in yields from 4.6% to 4.7% in March being the first time for such a rise to be seen since in two years. The level of increase has also remained steady for three consecutive months into May.
It, therefore, means that investor returns continue to favorably compare to those that are found in England and Wales. North East and North West were the only two regions that offered higher returns than the Scottish rental average this month. The rise was at 5% and 4.8% consecutively.
Stability in Tenant Finances Shows why Glasgow Dominates
According to a report by Your Move Scotland, there was a level of stability in the proportion of tenant arrears in the month of April and May. 10.1% of the tenants in this month encountered a form of a financial challenge. This is a similar ratio to the previous month. The figure is far much lower than 10.7% which was recorded in March. The number of households that had serious arrears for two months or more was 10,192.
New Regulations for Landlords
In just under a year, the new regulations involving energy performance certificates are likely to come into force. By the 1st of April 2020, rental property will be required to have an EPC rating of band E at least. Scotland’s letting Agents such as Your Move have committed to spending their time informing landlords of the upcoming changes.
This is to enable the landlords to make the necessary preparations so as to abide by the regulations. Landlords that fail to comply are likely to face fines. The fines may go up to £4000 if their property rating fail to meet the required standards. new regulations for the landlords is something that they should start thinking of.
The Lettings Director of Your Move Scotland; Brian Moran said, “Although the property purchase market may have slowed in some areas; demand for rented homes continues to outstrip supply. this was strongly witnessed in the Islands and Highlands.region. The prices in these areas have leaped in the past years.
The major cities of Scotland; Glasgow and Edinburgh have also shown impressive monthly figures. That has also demonstrated the enduring popularity of the areas. It’s therefore quite clear why Glasgow continues to dominate the Scottish rental market. As long as the demand for rental property continues to soar, there is a clear indicator that landlords can benefit from rental property investments
Glasgow dominates the property investment in Scotland and you can also position yourself well and make a leap into the market. Are you considering venturing into property investments and not quite sure of how to get started? Why not get assistance from property investment experts. Check out some property information for more insight on lucrative property investment opportunities that you can take advantage of.