Rents in Scotland eased slightly in Q3 2017 which may be a welcome surprise to many who fear an overheating market. Growth continued in the central belt but at lower levels than seen previously and coupled with continued falls in Aberdeen, albeit stable, resulted in slight negative growth of minus 0.4% year on year (YOY) for the country as a whole. The average rent in Scotland is now £772 per month. Rent caps in at least 2 council areas (Edinburgh and Glasgow) are likely to be requested when the new powers take effect from December however there are signs that the rate of growth has now peaked.
“BTL remains on the rise in the Central Belt with institutional investor activity in Scotland’s property market remaining high. ROI in the key cities continues with emerging new markets also providing steady numbers in comparison to 18 months ago. With some economic and political hurdles still to overcome, we need to work hard to influence the rest of the UK, which may still be undecided in investing in Scotland due to the perceived onerous tenancy changes and changes to regulations. Investors need to be comforted that the changes will not restrict them from making gains in a growth market with high rental values, prospects for further income growth as well as growing capital appreciation.”
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