“Brexit effect” dampens rental demand in Scotland
- Scottish rents rise 4.9% in the past year
- Signs that “Brexit effect” has reduced demand in some areas
- Glasgow and Clyde and Highlands and Islands see rents fall in past year
- Typical Scottish rental property lets for £575 a month
In its latest Scottish Buy to Let Index, Your Move has reported that rents rose by 4.9% in the past 12 months to February 2017 with the average property now being let for £575 per calendar month.
Interestingly the Index also highlights that there is evidence that a “Brexit effect” is reducing demand for rental properties in Scotland as many European Union migrants depart the country following last year’s leave vote. This has been seen more strongly in the Glasgow and Clyde and Highlands and Islands regions, which have a higher proportion of migrant workers, with prices in Glasgow and the surrounding areas, for example, dropping by 3.5% over the last year – faster than anywhere else. In contrast, however, the strongest performance (seasonally adjusted) came in the South of Scotland where prices increased by 4.2% in the last 12 months to hit £560.
Brian Moran, Lettings Director for Your Move in Scotland commented:
“The Scottish rental market continues to grow as a whole, despite variations on a regional basis, with demand reducing in several areas – particularly those with high numbers of migrants from European Union countries. For landlords and investors, however, yields have remained strong – particularly when compared to the returns on property in England and Wales.”