Scottish landlords can look forward to a fantastic New Year as rents in Scotland are at an all-time high.
According to the buy to let index on the YourMove website, rents in Scotland have risen by 2.2%. This means the average monthly rent on a property in Scotland is £527 per month and Scottish landlords are now enjoying a fantastic 8.4% return on their investment.
On the opposite side of the coin, YourMove has also revealed that the number of tenants in arrears has risen to 6.6 per cent, which is not so good for landlords.
More Landlord Investment Needed
According to Christine Campbell from YourMove, “Scottish rents have been steadily edging forwards and reached a new pinnacle in November. Demand and supply are still out of kilter and in highly sought-after employment and cultural nerve-centres like Edinburgh this overflowing competition for homes to let has topped up rent prices.”
Campbell believes that the only way to reduce the current rental housing shortage is for more private landlords to invest in rental properties.
“If buy-to-let investment dries up, and the pool of properties to let contracts, rents will swallow the shortfall and eat into tenant finances,” she adds.
Ban Rip-off Rents Says Labour
Michael McMahon, the Scottish Labour housing spokesman says these figures indicate a need for reform in the Scottish private rental sector.
“Too many families are just getting by, the last thing they need is an exploitative rent hike from a bad landlord. That is why Scottish Labour proposed to ban rip-off rent rises.”
