Chat with us, powered by LiveChat

Buy to lets in Scotland reap best profits

Landlords in Scotland are reaping more profits from their rental homes than others across England and Wales.

Yields in Scotland average 4.6 per cent a year - compared to an average of 4.3 per cent elsewhere, according to data from letting agents Your Move.

Regionally, only the North East (5 per cent) and North West (4.8 per cent) of England have higher yields.

Although landlord profits were up year-on-year in Scotland, tenant finances worsened.

Landlords were tackling rent arrears in 10.5 per cent of rented homes in February, compared to 9.6 per cent in January.

The firm calculated 9,210 homes are in serious arrears of two months or more rent.

Average rents across Scotland are £585 a month, with tenants paying £699 a month in Edinburgh and Lothians and £534 in the south of Scotland, where rents dropped 2.4 per cent year-on-year.

In addition, rents were up 5 per cent in the year in Edinburgh, 5.6 per cent in Glasgow and 7.3 per cent in the Highlands and Islands.

Nationally, rents saw an average increase of 1.7 per cent in the year to the end of February 2019.

Brian Moran, lettings director, Your Move Scotland said: “Our figures demonstrate that for those owning rental property returns can be good.

“With more families appearing to be looking to rent, larger family homes represent an increasingly stable option for landlords.

“It is little wonder that existing or prospective landlords from other parts of the UK are choosing to enter the strong Scottish rental market.

“For landlords already in the sector, an average yield of 4.6 per cent could convince many to expand their portfolios in the future.”

The letting agent is also warning landlords to ready for new energy performance legislation coming in April 2020.