October 2017 - A base for growth - Scottish market shows stability
A base for future growth
Four of the five Scottish regions saw rent increases in the year to September, Your Move Scotland found. The strongest growth came in the Highlands & Islands where prices are 5.6% higher than a year ago.
The average price in this region this month stood at £610, well up on the £576 recorded in September 2016.
The next strongest growth was seen in Edinburgh & Lothians, which is home to the highest rents in Scotland. Prices in the capital and surrounding area averaged £669 in September, having increased by 4.5% in the last 12 months.
Only one region, Glasgow & Clyde, posted a year-on-year price fall. Average rents in September 2017 was £541, compared to £579 in September 2016 – a 6% decrease.
The East of Scotland remains the cheapest place to rent in the country. Despite a 1.9% annual price growth, the average rent now stands at £538 - lower than anywhere else surveyed.
No matter whether prices are rising or falling in their local area, landlords and letting agents should be readying themselves for an upcoming change in legislation.
From 31 January 2018 the Letting Agent Code of Practice will come into force and agents will have to declare themselves compliant with this new legislation.
Letting agents will be required to join a Register of Letting Agents and Your Move Scotland is urging all landlords and property investors to enquire with their current agent to ensure they will be compliant with the new rules.
Letting agencies must have submitted an application to join the code of practice by 30 September 2018. From that point it will be a criminal offence to conduct letting agency work if you aren’t on the register. Those breaking the rules could face a fine of up to £50,000 and up to 6 months imprisonment.
The new legislation is intended to increase professionalism in the sector and make sure that agents are properly able to handle money received from both tenants and landlords.