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Rents in Scotland continue upwards but still 30% below England and Wales
Residential rents in Scotland accelerated again in March with annual growth of 1.3%, up from 1.1% in February, according to the latest buy to let index. Average monthly rents in Scotland now stand at £539 and they are some 30% lower than the typical rent in England and Wales, the index from lettings agent network Your Move also shows. Total annual returns on rental properties in Scotland reached the highest level on record at 9.7% on average in the 12 months to March 2015, up from 7.2% a year ago. This is equal to £15,000 per property before any mortgage payments or maintenance costs, but taking into account property price growth and void periods between tenants. Buy to let investors in Edinburgh have experienced the strongest annual returns in the last year of 13.4%, equivalent to £27,135 in cash terms. In the month to March, Scottish rents increased 0.3% overall, the strongest monthly uptick witnessed since October 2014, after a winter downtrend. ‘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,’ said Brian Moran, area lettings director at Your Move. ‘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,’ he added. A breakdown of the figures show that on an annual basis, rents have risen across three of five regions in Scotland. In Glasgow and Clyde, rents have seen the biggest increase over the past 12 months, with rents now 3.6% or £19 higher than in March 2014. Edinburgh and the Lothians have experienced a 2.3% jump in rent prices year on year, and the East saw a more modest 0.8% annual rise in rents. Rents have fallen across two regions of Scotland in the last year. The Highlands and Islands witnessed the most significant annual drop, with rents falling 1.9% and in the South of Scotland rents are now 0.1% lower than a year ago. Compared to last month, rents are higher in only two of five Scottish regions. Rents in the South of Scotland saw the biggest monthly uplift in March, but still have the cheapest monthly rents across the country, at £489. Rents in this area have climbed 1.8% since February 2015, as rent growth starts to get back into its stride a long spell of price drops in the latter half of 2014. The only other location to experience a boost in rents in the past month was Glasgow and Clyde, with rents rising 0.3% during March. The majority of regions have witnessed a fall in rents month on month. The steepest drop in rents was in the Highlands and Islands, down 0.6% since February. Edinburgh and the… Continue reading
Research reveals how home moving costs have soared in a decade
The additional costs of moving home in the UK have increased by more than half over the last 10 years and are now £11,844, according to new research. However, prospective home buyers expect to spend only £6,895 and some 84% underestimate the cost of moving, which included agent fees and conveyancing costs, the study from Post Office Money shows. It also reveals that estate agency fees have increased by 61% over the last decade while house prices have risen by 39% on average and all these extras are on top of the £90,889 the average buyer needs to find for a deposit. The figures, by the Centre for Economics and Business Research (Cebr) for the Post Office, shows that costs were just £7,475 in 2004 and increased by 20% in the last year alone. People hoping to buy in the next three years expect to spend just £6,895 on moving costs, just 58% of what they should actually be budgeting. ‘With prospective home buyers' attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought, particularly for first time buyers,’ said John Willcock, head of mortgages at Post Office Money. ‘Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this. Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These extras should be considered as part of the overall cost of buying or moving home,’ he added. One of the most significant moving costs to increase over the past 10 years is the fee charged by estate agents. This cost has jumped by 61% since the end of 2004 from £3,229 to £5,214 in 2014 compared with a 39% increase in house prices over the same period as estate agents seek to keep up with changing house prices. Other fees to consider when moving to a new home include conveyancing costs and surveyors' fees which have increased by 37% from £1,039 in 2004 to £1,419 in 2014, and 51% from £402 in 2004 to £607 in 2014, respectively over the last decade. Even renters who move between properties are not exempt from moving costs. The amount charged by the average removals service has increased by 21% over the past 10 years from £855 in 2004 to £1,034 in 2014. Those hoping to move in the South East have been hardest hit by these increases with costs jumping by 97% in the last 10 years from £8,907 in 2004 to £16,510 in 2014. However, London remains the most expensive place to move home with an average cost of £27,946. Continue reading
