THE cost of renting a home in Scotland has started to rise giving landlords a greater return on their investment, a new report has found.
The latest Scotland Buy-to-Let Index from Your Move found that total annual returns on rental properties reached their highest level on record in March 2015,
This comes as rent rises start to pick up after a slowdown in annual growth. The average residential rent in Scotland has risen 1.3 per cent since the start of the year, taking the average monthly rent across Scotland to £539.
Scottish landlords have seen total annual returns of 9.7 per cent on average in the 12 months to March 2015, up from 7.2 per cent a year ago and equal to £15,000 per property.
Buy-to-let investors in Edinburgh have experienced the strongest annual returns in the last year of 13.4oer cent, equivalent to £27,135.
Brian Moran, area lettings director at Your Move, said: "Despite surging demand for homes in the private rented sector, Scottish rents have been treading water in recent months, allowing tenants some valuable breathing space over the winter.
"Now we're starting to see growth scale up again in the spring, as the rental cycle starts to gain momentum. But even this is still at very modest levels compared to the rest of the UK - with rents rising at less than half the pace as being seen in England and Wales.
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."
He added: "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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