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The Scottish independence referendum contributed to the country's rents reaching an all-time high, according to the latest buy to let index from Your Move.

Rent growth accelerated on a monthly basis over the past three months, as polling day approached and cumulatively average residential rents have risen 1.3 per cent in the three months to August.

Doubt over the outcome of the referendum and lack of clarity over the mortgage and taxation consequences of a possible Yes vote, prompted people to delay purchase decisions and consequently heightened demand in the rented sector, Your Move claims.

The average residential rent across Scotland is now 2.7 per cent higher than in August 2013, currently standing at £537 per month. This represents a rise of £14 from a year ago, is the highest level of average residential rent in Scotland on record, and is up 0.5 per cent since July.

Rents have risen on an annual basis across all five regions of Scotland and have climbed to new record peaks in both Glasgow & Clyde, and Edinburgh & the Lothians in August.

Glasgow & Clyde saw the fastest annual increase, with average monthly rents up 5.5 per cent on August 2013 and now standing at £575. This is followed by 3.8% per cent annual growth in Edinburgh & the Lothians, where rents rose by £22 over the past year to an average £602 per month.

Two regions have seen rents dip on a monthly basis. The South witnessed the biggest fall in average rents, down 2.2 per cent in the month to August, while in the Highlands and Islands rents were 0.2 per cent lower.

As of August the gross yield on a typical rental property in Scotland stood at 4.0 per cent, a fall of 0.2 per cent since August 2013.

Taking into account price growth alongside void periods between tenants, the total annual return on an average rental property stands at 9.9 per cent.

Comments

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    And we think that this is nothing to do with the Tenant Fee ban!

    • 02 October 2014 15:53 PM
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    Since 2004 rents in Edinburgh have lagged inflation.

    Then Shelter ban letting fees and put money into tenants pockets. Tenants have then spent this extra money on rent and for the first time since 2004 edinburgh rents rise by above inflation.

    In summing up the actions of Shelter and the Scottish Government have caused a massive headache and generated negative publicity to the PRS but have failed to put extra money into tenants pockets.

    Perhaps in future they should avoid getting involved in issues they do not understand.

    • 24 September 2014 10:24 AM
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    Ha, Ha. More like it serves Shelter and the other organisations right for doing away with agents fees to tenants in Scotland. It seems to me that the rise might have something to do with the yes/no vote, but more likely its landlords understandably not wanting to pick up the entire bill for letting their properties and so passing this onto tenants in the form of higher rents. All Shelter have done is make renting more expensive for tenants. So tenants need to blame shelter for the rent increases not the landlords or agents. Serves them right let it be a lesson to them before the same thing happens in the rest of the UK.

    • 24 September 2014 07:48 AM
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    Interesting figures from Your Move as some agencies in Scotland were achieving those kind of figures nearly 10 years ago. These types of reports have very limited value as it depends on the type of area and property being dealt with, same as one businesses' average property sale price. We all know that at various times Nationwide and Halifax do not lend at the bottom end of the market and that distorts their average house price report. The only people fooled by these are the consumer. Is it a breach of CPR

    • 24 September 2014 06:10 AM
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