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Wednesday, April 27, 2016

Record dip in Scottish rents

There has been a drop in average rents in Scotland according to letting agents, Your Move.

The average rent in Scotland dropped by 0.7% over the course if March to £544, the largest monthly fall on record.

The only part of Scotland to experience a rise in rent during March was the capital - Edinburgh.

Brian Moran, lettings director at Your Move Scotland reflects on the March rental data -

"What we do know, is that if landlords hit the brakes and cause a roadblock of supply in the private rented sector, tenants will be the casualties paying higher rents in the longer term,

March has seen a very unwelcome about turn in the direction of tenant finances. Up until now Scottish tenants have been making good ground over the spring months, and paying down levels of late rent but there’s still a mountain to climb for many households,

External factors and the wider economic climate obviously have a vital impact on tenants’ bottom line and the delicate balancing act between monthly income and outgoings, but landlords on the ground can help keep a lid on affordability pressures too.

Good management of buy to let properties and regular communication between landlords and their tenants is crucial to signpost any early concerns and avoid the likelihood of rental arrears. Tenants need properties they can afford, and landlords need tenants with a healthy grip on their household expenses, so it’s about striking a fair deal for both,"

On the surface, the new LBTT benefitting the vast majority of Scottish buyers made it more expensive to become a landlord last Spring, with average property prices sent skyward after an onslaught of high value house sales at the top end of the Scottish housing market,

This short term scramble and the impact this had on values at the time meant that many existing landlords experienced faster capital growth than they were counting on last year, and on the flip side, those who entered the fray at the peak of the rush seemingly paid a premium that they may not have obviously recouped back yet. But it’s worth remembering that they’ll have saved themselves the extra 3% stamp duty now liable on buy to let purchases,"

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