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Scottish Rent Values Rise by 0.1 Percent

Posted by Aliza Xandria Arellano on Dec 24, 2015 03:28 PM EST
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GLASGOW, UNITED KINGDOM - OCTOBER 08: A woman stands under a 'to let' sign on October 8, 2008 in Glasgow, Scotland. The UK government has announced rescue package for the banking system in an attempt to help stabilising the economy. (Photo : Jeff J Mitchell/Getty Images)

Scotland's tenants will face another rent hike before Christmas and again before the year comes to an end. The latest index by Your Move Scotland showed Scottish residential rental growth had almost ground to a halt in the run-up to this festive holiday season. Also, the average monthly rent was up in November by 0.1 percent month on month, which takes the average rent to £546 per month, showing that growth had fallen from a 0.2 percent rise between September and October, as reported by PropertyWire.

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Looking at the figures on a yearly basis, the tempo of rent increases in Scotland is continuing to weaken. Moreover, the report added, "November marks the fifth successive month where annual rent growth has slowed. With Scottish rents now just 1.4 percent higher than a year ago, the pace of annual rent rises has more than halved since the June peak when rents were up 3.1 percent year on year."

What's more, according to Brian Moran, Lettings Director at Your Move Scotland, "The market is now set for a change in 2016 with an extra 3 percent stamp duty tax set to be in place from April and rent control proposals looming."

He also reckoned that it would result in a smaller number of properties available for rent, which could make the prices go up. He went on to say, "Landlords and the private rented sector have become a popular target for the Government recently but any attempts to curb investment in the private rented sector, and undermine landlords, will only have an adverse effect on tenants' rents."

Meanwhile, a breakdown of the index figures shows that in addition to Edinburgh and the Lothians seeing above average growth, rents in the South of Scotland climbed 0.2 percent and those in the South were up 0.1 percent, as stated in a report by Gaspark.

If house prices continue to climb at the same rate as witnessed over the last three months, the average buy-to-let investor in Scotland could expect to make an overall annual return of 9.9 percent in the next year, equivalent to £16,000 per property, as further stated in the same report.

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