04
Sep
2018

Landlords in Scotland see buy to let rent rise

Buy to let rents in Scotland increased 2.5% to an average £652 a month in the year to the end of June. The hike saw tenants paying an extra £16 a month as their accommodation costs rose from £636 in June 2017. The month-on-month increase is much slower at 0.3% - an increase of just £2 a month from May to June. The rate of rent increase is on a downward trend from a recent high of just under 6% a year in February, says landlord reference firm Homelet, which compiled the data.

Rents are also taking a larger slice of household income in Scotland. In June 2017, the rent ate 26% of annual household income. This has grown to 27.7% over the past 12 months, meaning rent is taking a larger slice of the budget for most households.

Meanwhile, although rents in Scotland are well below the UK average, the national figures are inflated by what tenants pay in London, where the average rent is £1,596 a month after a 4.7% year-on-year increase. The study also revealed 52% of landlords intend to put rents up within the next 12 months, while 31% confirmed they would keep their current rents and 17% said they were unsure about what to do.

UK rent data June 2017- June 2018

Region

Jun-18

May-18

Monthly change

Jun-17

Annual change

Scotland

£652

£650

0.3%

£636

2.5%

Wales

£603

£604

-0.2%

£608

4.1%

Northern Ireland

£641

£634

1.1%

£610

5.1%

England

£833

£829

0.5%

£817

1.8%

UK

£924

£919

0.5%

£908

1.8%

 Source: Homelet

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