Scotland business

Landlords enjoy highest rental returns on record

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Annual rental returns in Scotland have risen to the highest level on record, according to new figures.

It means landlords are, on average, earning £15,000 per property before mortgage payments or maintenance costs.

Around £6,000 of this is made up of rental income and £9,000 is on capital gains.

The figures, from lettings agent Your Move, show that Scottish landlords have seen total annual returns of 9.7% on average in the 12 months to March.

This is up from 7.2% a year ago.

Buy-to-let investors in Edinburgh have experienced the strongest annual returns in the last year of 13.4% - equivalent to £27,135.

The average monthly rent in Scotland was £539 in March, a 1.3% rise over the year.

Brian Moran, area lettings director at Your Move, said: "The solidity of the Scottish lettings market is translating into a rise in the fortunes of landlords - who will have plenty of cause for cheer looking back at their returns in the past year.

"Particularly with signs that rent growth is amplifying once again, the reasons to invest in buy-to-let are being heard loud and clear.

"As more and more landlords join the party, the greater choice of rental homes on the market will ensure that rent inflation doesn't get too deafening for tenants."

Scottish rental prices remain lower than England, where monthly rents stand at £768 on average.

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