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February 2017 - “Brexit effect” dampens rental demand in Scotland

Fast Facts

  • 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.

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Quick Quotes

Brian Moran, Lettings Director, Your Move Scotland comments:

  • "The Scottish rental market continues to grow as a whole, despite variations on a regional basis."

  • "This month we have continued to see demand reduce in several areas – particularly those with high numbers of migrants from European Union countries.”

  • "Government schemes have also had an impact on the rental market with more people being able to purchase their first home and leave the rental arena."

  • "For landlords and investors yields have remained strong – particularly when compared to the returns on property in England and Wales."

Key insights

  • There is evidence of a “Brexit effect” 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.

  • Across the whole of Scotland rents rose 4.9% in the past 12 months with the average property let for £575 per calendar month.

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