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January 2016 - Scottish Buy to Let Index

Scotland’s tenants move back into the black

  • Six-month low for late rent, with only 11.1% of January rent falling in arrears – lowest since July 2015
  • Scotland’s average rent rises stand at 2.3% over past year, while January’s £548 the same as December
  • Average rent rises distorted upwards by some exceptional regions, up 6.4% in Edinburgh & Lothians
  • Rents in East of Scotland in fact 1.7% lower than a year ago – while Glasgow’s tenants pay 0.2% less
  • Slower house price growth is hampering landlords’ returns, falling to 5.8% in the year to January

Scottish tenants are paying off late rent, amid improving household finances, according to the latest Scotland Buy-to-Let Index from Your Move, one of Scotland’s largest lettings agent networks. 

As of January the proportion of late rent has fallen to represent 11.1% of all rent due in the month.

This is an improvement on 11.4% seen in December – and represents the lowest level of late rent in Scotland seen since July 2015.

Previously, arrears surged over the autumn to reach a record high of 13.8% in October 2015, before beginning to improve. Tenant’s finances remain in worse shape than twelve months ago, when in January 2015 as little as 7.1% of all rent due was late.

However the change in direction is now clear – in the third consecutive month-on-month drop in Scottish tenant arrears.

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Scotland Jan16 BTL Infographic