The Scottish lettings market has seen demand from renters rocket 77.5 per cent this year, with 14 tenants now chasing each new rental property, according to a leading letting agent.
A report by Martin & Co, which has nearly 200 offices in the UK, including 15 in Scotland, said yesterday that average rents paid north of the Border rose by 5.4 per cent over the year as acceptance of renting grows.
Group chief executive Ian Wilson attributed the rent rise to the thriving demand and low supply still dominating Scotland’s private rental market.
Martin & Co said the sector now represented a highly attractive investment proposition, “with our report showing buy-to-let lending across the UK reaching £8.8 billion in the second quarter”, its highest level since the second quarter of 2008.
Wilson added: “Now Scotland has replicated the 3 per cent stamp duty hike on buy-to-let properties, buyers will need to be prudent. However, if they take a long term view, there are some excellent returns to be had in Scottish cities, which will absorb the additional costs imposed by the stamp duty.”
The firm found that the highest growth was in northern Scotland, where prices rose by 12.7 per cent this year. The highest-ranked seaside location in the UK was Ayr, with average yields for two-bedroom flats of 7.6 per cent, and Edinburgh came fourth out of tech growth locations, with average yields of 5.8 per cent for a two-bedroom flat in Leith.