ANNUAL rental returns on rental properties have risen to the highest level on record, according to new figures.
The figures, from lettings agent Your Move, show that Scottish landlords have seen total annual returns of 9.7 per cent on average in the 12 months to March, up from 7.2 per cent a year ago.
It means landlords are, on average, earning £15,000 per property before mortgage payments or maintenance costs.
Buy-to-let investors in Edinburgh have experienced the strongest annual returns of 13.4 per cent – around £27,000 in cash terms.
The average monthly rent in Scotland was £539 in March, a 1.3 per cent rise over the year.
Glasgow and Clyde saw the biggest increase over the past year, with rents now 3.6 per cent or £19 higher than in March 2014.
Edinburgh and the Lothians saw a 2.3 per cent rise, while the East saw a more modest rise of 0.8 per cent.
The Highlands and Islands and the South bucked the trend, with rents falling by 1.9 per cent and 0.1 per cent respectively.
The figures show that Scottish rental prices are rising at less than half the speed they are in England and Wales, where monthly rents stand at £768 on average.
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.”
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