Since the last Scottish elections four years ago, rents have risen at only half the pace of growth seen across England and Wales, according to Your Move, one of Scotland’s largest lettings agent networks.
The average monthly rent in Scotland is now 5.3% higher than at the time of the previous elections to the Scottish Parliament.
As of January 2015, the typical residential rent in Scotland stands at £536 per month, up from £509 in May 2011.
This rent growth represents just half the pace of rent increases across the rest of the UK over the same time period. By contrast, the average residential rent across England and Wales has climbed 9.6% since May 2011,.
Following a 0.1% monthly dip in rental prices during January, the average monthly rent for Scots is just 1.3% or £7 per month higher than a year ago. But south of the border, rents in England and Wales have risen 2.8% year-on-year.
The firm said that the market was now settling back after rents rose when letting agent fees were abolished in late 2012, forcing agents to find other ways of recouping costs.
Comments (1)
If an Agent lost a tenant’s fees of say £300 for a 12 mth tenancy they would have required to find £25/mth to offset this. (This is the increase in rent on average property since 2011) On the basis the average Agents fee is 10% the rent would require to be increased £250/mth (in my area that equates to a 50% rent increase!!)…in addition fees are only charged on new lets and therefore making statements that there was a direct coloration between abolishing fees and rent increases is absurd. Most lets are between 12-18 months and therefore it would take this time to find its way through the system.
It is a very competitive market why would the Landlord absorb these costs?