Report Shows Average Monthly Rents Hitting Record High

The cost of renting a home has risen by just over 3% compared with last year, according to new data.

The average monthly rent in Scotland is now at a new high of £549, the latest Scotland Buy-to-Let Index from Your Move has reported.

It found that growth in Scottish rents accelerated to 3.1% in the year to June, up from 2.7% in May and 1.6% in April.

June's figure represents the fastest year-on-year increase since April 2014, when annual growth stood at 3.5%.

Landlords' total annual returns stand at 13.8% in June 2015, up from 9.5% a year previously, while there is evidence that some tenants are struggling, with 9% of all rent paid late - an increase from 8.8% in May.

Glasgow and Clyde saw the biggest boost in rents year-on-year, with typical rents up 4.6% since June 2014.

Rents in the Highlands & Islands have jumped 4.3% in the past twelve months, taking the average monthly rent to a record high of £563.

Similarly, rents in the East and South of Scotland have both reached a new peak following annual rent rises of 4% and 2.1% respectively.

In contrast, Edinburgh & the Lothians has experienced the smallest yearly increase of only 0.8%.

Brian Moran, lettings director at Your Move Scotland, said: The volume has been cranked up in the Scottish rental market after a muted winter and a much faster beat of rent rises is now audible.

Rents are hitting all-time local records in the parts of Scotland that have traditionally been more affordable to live, where rental prices are lower.

It's not just the big urban centres of Edinburgh and Glasgow which are coming up against an urgent shortfall of housing - there is furious demand for homes to let the length and breadth of the nation, and that is underpinning this build-up in rental prices.

The delicate market equilibrium may also be imbalanced by the ripples of the summer Budget.

With landlord's tax relief compressed, the vital bedrock of the private rented sector - investment - could fall short of what's required to meet the towering demand on the market.

Greater supply of homes to let is the only way to definitively address the housing shortage and ease the financial pressure in the market.''

Commenting on the increase in rents, Scottish Labour housing spokesman Michael McMahon said: We need to reform the private rental sector to make it work for everyone rather than simply act as a cash cow for landlords.

It needs to serve the families unable to get a foot on the property ladder or access to social housing.

An unfair rent hike from a bad landlord is the last thing anybody needs, especially the over 100,000 households in Scotland who live in poverty and rent privately.

Scottish Labour would ban rip-off rent rises. This is about making the system fit for purpose. When the SNP opposed our plans last year they sided with Tories and bad landlords, rather than with tenants across Scotland.''

Adam Lang, of housing charity Shelter Scotland, said: When wages are stagnant and people are already struggling with housing costs, a rent increase above inflation only makes it even harder for people - especially young families and those on lower incomes - to make ends meet and keep a roof over their head.

Coupled with recent proposals to remove housing benefit support from under 21-year-olds - making it even harder for young people to make a home in the private rented sector - all-time high rents are bad news for those who are already struggling to keep up with rent payments.

The root cause of high rents is a major lack of affordable housing across Scotland.

To meaningfully tackle our housing crisis, we need to build 10,000 new social homes every year to help those for whom the prospect of a home of their own is still well out of reach.''

Social Justice Secretary Alex Neil said: We are already taking action to reform Scotland's private rented sector as part of our commitment to making sure everyone in Scotland has access to good quality, affordable housing.

Over the last two years we have legislated to regulate letting agents, provided local authorities with further powers to tackle poor landlord practice and have banned the charging of premium fees.

This autumn we will introduce a Bill to Parliament that will create a new private rented sector tenancy, improve security for tenants allowing them to better assert their rights and include proposals to protect tenants against excessive rent rises.''

Mr Neil said the Government is also investing in affordable housing and safeguarding stock by abolishing the right to buy for social housing tenants.