publication date: Feb 7, 2014
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Scottish rents rise in the cities, fall in the regions
data from the Belvoir
figures suggests a small rise year on year, however, this is an anomaly in the figures due to a change in the mix of advertised properties, the real picture from Scotland shared by most agents ‘on the ground’ is one of static rents through to some areas showing small falls. This trend is reflected well in the Homelet
data which shows a small decrease of -1.6% year on year, while the Move with Us index indicates a slight upward movement year on year of 2.2%.
Overall rents in Scotland, bar regions such as Aberdeen, Edinburgh and Glasgow are static to falling.
If you are a landlord/tenant in Scotland
, rents are around £565 per month, but as per previous figures, Move with Us do seem to have a higher than the average figure of £660 per month. Overall, there is very little movement in rents, with only slight rises in some city areas, but remaining stable to slight falls on the outskirts and more rural areas.
- Landlords – Keep an eye on your returns and if interest rates rose, check if your property will still be cash flow positive? While rents are rising, take the chance to improve any neglected décor and/or maintenance and always check you are mitigating tax. Check out whether you are paying the right tax by reading our Buy to Let Tax Checklist.
- Tenants – Make sure you rent from a reputable landlord. Ask to see the EPC, a gas safety certificate and find out which scheme your tenancy deposit will be kept in. Only then should you choose a property – otherwise you could end up with a rogue landlord or someone who is renting property illegally but doesn’t even know it! Don’t rely on the landlord or agent to rent legally - check for yourself! Renting a Property Checklist.
- Letting Agents – When rents are not rising, landlords need more help maximising their returns. To attract new landlords, ensure you provide a service which is more about maximising their investment returns and not just marketing and managing a property.
Rents in Wales on the Rise?
In Wales, the LSL
figures suggest an insignificant decrease in rents year on year, with Belvoir
, Move with Us and Homelet
indicating rent increases year on year of 0.5%, 1.2% and 5.9% respectively.
Talking to local agents in Wales, the Homelet rise looks like an anomaly so the real picture is rents are static or at most seeing some small rises.
If you are a landlord/tenant in Wales, rents vary from around £550 up to £635. However, Move with Us does have a higher than average rental figure of £685. The majority of rental surveys are saying rents are static to slightly rising, with the exception of Homelet
who registered rises above inflation of around 6% across Wales.
- Landlords – Even though rents may be on the up, tenants are becoming more choosey, so to re-let quickly make sure your property is freshly painted and everything is in good working order.
To help keep utility bills down for tenants so they can afford rent rises, read our Creating an Energy Efficient Home Checklist.
- Tenants – Even though rents may be starting to rise, don’t rush into renting a property. Take time to choose a suitable, legally let property you can stay in for the long term if you wish. Find one which is in good condition and the maintenance is up to date.
You do have a choice as a tenant, make sure you rent from the good guys! - read our How to Avoid Rogue Landlords Checklist.
- Letting Agents – With a shortage of stock to rent, you are going to need to make sure you take advantage of things like the ‘build to rent’ scheme, supported by the government. Securing new business based on cutting commissions is a recipe for financial disaster, so aim to deliver great service to secure landlords and tenants in the long term.
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