A recent report from the Office for National Statistics (ONS) reveals that private rental prices grew by 3.5% in Scotland in the 12 months to June 2022 – a higher growth rate than England and Wales which saw increases of 2.9% and 1.9%.
Scotland’s rental price growth rate is up from that of 3.1% in May 2022 and is the highest annual growth rate since ONS’ Index of Private Housing Rental Prices began in 2012.
Overall, private rental prices paid by tenants in the UK has rose by 3.0% in the 12 months to June 2022, up from 2.8% in the 12 months to May 2022.
As a result of these increases, average landlord yields across the UK have also risen. Rightmove’s recently published Q2 2022 Rental Trends Tracker reports that the average landlord yield in the previous quarter stood at 5% (an annual increase of 0.6%).
Out of 11 regions in the country, Scotland’s average yield is the second highest at 7.3% (an annual increase of 0.7%), behind the North East’s 8.1%.
Despite challenges such as navigating legislation changes, a recent survey by the property portal has revealed that a third (34%) of landlords said they plan to expand their portfolio during the next 12 months, compared with 11% who plan to reduce the number of homes they rent out.
Commenting on the findings from their Q2 2022 Rental Trends Tracker, Rightmove's Director of Property Science Tim Bannister said:
“The story of the rental market continues to be one of high tenant demand but not enough available homes to meet that demand. Last year we saw exceptional numbers of tenants looking to move and this year we have seen no let-up in this trend. Whilst stock levels are beginning to improve, with June seeing the highest number of new rental listings coming to market so far this year, the wide gap that has been created between supply and demand over the last two years will take time to narrow. Until then, this imbalance will continue to support asking rent growth. This has led to our revised forecast of a 8% rise in asking rents by the end of the year up from 5%.”
If you’re a landlord looking to expand your rental portfolio or perhaps looking to buy your first rental property, we have a range of lots across Scotland ideal for buy-to-let investment, including those with tenants already in situ so you can generate rental income from day one. Browse the lots on our website or give our team a call on 0141 339 4466 for help with your search.
Alternatively, if you have a rental property that you are looking to sell, auction can offer you a quick and convenient way to do so. Please get in touch for a free, no obligation auction valuation.
Original sources:
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/june2022
https://hub.rightmove.co.uk/rental-trends-tracker-q2-2022/
