Scotland’s rental returns rise to highest ever

Landlords will have plenty of cause for cheer looking back at their rental returns. Picture: Phil Wilkinson
Landlords will have plenty of cause for cheer looking back at their rental returns. Picture: Phil Wilkinson
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ANNUAL rental returns in Scotland have risen to the highest level on record, according to figures.

It means landlords are, on average, earning £15,000 per property before mortgage payments or maintenance costs, with about £6,000 made up of rental income and £9,000 of capital gains.

“The solidity of the Scottish lettings market is translating into a rise in the fortunes of landlords - who will have plenty of cause for cheer looking back at their returns”

Brian Moran

The figures from lettings agent Your Move show Scottish landlords have seen total annual returns of 9.7 per cent on average in the twelve months to March 2015, up from 7.2 per cent from a year ago.

Buy-to-let investors in Edinburgh have experienced the strongest annual returns in the last year of 13.4 per cent - equivalent to £27,135.

The average monthly rent in Scotland was £539 in March, a 1.3 per cent rise over the year.

Brian Moran, area lettings director at Your Move, said: “The solidity of the Scottish lettings market is translating into a rise in the fortunes of landlords - who will have plenty of cause for cheer looking back at their returns in the past year.

“Particularly with signs that rent growth is amplifying once again, the reasons to invest in buy-to-let are being heard loud and clear.

“As more and more landlords join the party, the greater choice of rental homes on the market will ensure that rent inflation doesn’t get too deafening for tenants.”

Scottish rental prices remain lower than south of the border, where monthly rents stand at £768 on average.