Scottish rental growth at three-year low

Annual rent rises in Scotland hit a three-year low in April, according to new figures.

Your Move's Scotland Buy-to-Let Index shows that average rents in Scotland increased by 0.6% in the twelve months to April, the slowest annual rise recorded since March 2013.

April's figures show a significant decline when compared with February (2.1%) and March (1.1%).

The average rent in Scotland is now £542 per month, the lowest figure recorded since April 2015 (£539). 

On a monthly basis, typical Scottish rents have fallen for the second consecutive month, down 0.4% since March.

Edinburgh and the Lothians is the only region in Scotland to record monthly rental increases, rising by 0.8%.

The worst performing region was the Highlands and Islands, where average rents fell by 1.7% between March and April.

The index also reveals that the proportion of late rent increased to 11.6% of all rent due in April, compared to 11.3% in March. 

On an annual basis, tenant arrears have worsened too, with late rent standing at just 9.2% in April 2015.

In the twelve months to April, Scottish total annual returns stood at -4.8%, improving from -5.6% recorded over the year to March.

According to Your Move, average returns are still being affected by the introduction of the Land and Buildings Transaction Tax last April.

"Landlords are up against a considerable cocktail of hurdles, including a higher rate of stamp duty on property purchases, reductions in tax relief, and the Private Tenancies Bill," says Brian Moran, Your Move Scotland's lettings director. 

"While levied at landlords, these measures could soon hurt thousands of tenants too, if buy-to-let investment retreats as a result and there are less houses and flats to rent.”

Yesterday, Your Move and Reeds Rains reported that average rents in England and Wales are now rising at the fastest rate since September 2015.