The Scottish rental market is experiencing somewhat of a boom, according to the latest figures released by Your Move.
The UK rental sector as a whole is currently seeing growth, but the Scottish market in particular is outperforming that of England and Wales, recording a 2.2% rise in average rental prices year-on-year, from £526 in October 2013 to £537 in 2014.
This compares favourably to England and Wales’ 1.5% average rental price growth over the course of the last year, the ‘Scottish Buy-to-Let Index’ has shown.
Scottish rental rates have been on the up for the past three years – in October 2011 they stood at £507 on average, 5.9% lower than today. Since then, this figure has increased each year to the healthy figure of today.
“With the Referendum uncertainty behind us, there is now an increase in tenant demand in Scotland, along with additional instructions from new and existing landlords,” Neil Woodhead, founder of Ready Rentals, commented.
“With the majority of landlords non-resident, purely buying as investors, in light of the recent clarification of the Scottish Government's new powers, it is anticipated that increasing numbers will now have the confidence to invest for the future,” he added.
Woodhead believes it’s crucial that landlords continue to consider what they can do to make the very best of their property. He has a number of tips for landlords to help them maximise the return on their investment.
1. Follow the market closely to identify future growth areas.
2. Compare your property with others in the local area. Modern, well-looked after properties will be more appealing to would-be tenants, who would be willing to pay that little bit more for somewhere that is in tip-top condition.
3. The best returns don’t necessarily come from ‘executive flats’. Many tenants with children are seeking out long-term rentals with gardens that are in close proximity to schools. In many areas these properties typically cost less to buy but achieve higher rents.
4. Consider the possibility of renting to tenants with pets. Currently, very few landlords are offering suitable accommodation for tenants with pets in tow, or are refusing outright to allow this type of tenant. As such, you could command a premium by making your property fit for pets.
5. Make sure your property is up-to-date with all the latest technology and mod-cons. A property without a good internet connection and mobile signal will be an important issue these days for those looking to rent
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