Rents in Scotland have slowed down as a second market monitor flags weak growth for buy to let landlords.
Market intelligence and referencing agency Homelet reports rents dropped by 1.9 per cent between November and December. The average tenant pays £623 a month for a home - up 1.5 per cent or £9 a month year-on-year but down £12 a month from November 2018.
The data follows a report from the Office for National Statistics earlier in the month highlighting buy to let rents in Scotland were up 0.5 per cent in the year to the end of last November. The ONS explains more homes available to rent and weaker tenant demand has led to the trend since mid-2016. In comparison, more tenants are chasing fewer properties in England, with the impetus keeping rents higher.
Average UK rents are £921 a month, up 0.3 per cent from November and 1.5 per cent from December 2017, says Homelet.
“Positively for tenants and landlords, we’ve seen stability in UK rental price growth, with increases remaining broadly in line with inflation. For landlords, there is a sustained demand for property, with the private rental sector continuing to provide the market with both flexible and long term housing options,” said Martin Totty, chief executive at HomeLet.
“Private residential landlords will continue to play a key role in the wider UK housing market. While the outlook for property investors remains positive, one of the key concerns for the market in 2019 would be a potential lack of supply in certain regions.
“The government’s squeeze on private landlords via taxation changes and more regulation could discourage their continued participation in this important sector. Unlike the trends we saw in 2018, any reduction in supply could lead to rental increases that are above inflation.”