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October 2016 - Scottish rental prices outperform expectations

Yields drop back but performing strongly

  • Yields may have ticked down between September and October, but still remain highly competitive when compared to both property investment in other parts of the UK and Scottish yields in previous years.

  • Rental properties in Scotland typically returned 5% in October 2016, down on the 5.8% recorded in September but still well above the 4% seen a year ago.

  • Despite the fall in yields in Scotland, landlords will be boosted by strong rents in most areas and a fall in the level of arrears across the country.
  • Landlords in Scotland continue to see much better returns than their counterparts in England and Wales, where the average yield in October stood at 4.7%. Only properties in the North East and North West regions of England saw better returns; 5.3% and 5.1% respectively.