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Landlords expect to sell properties and increase rents

The Residential Landlords Association (RLA) report one in five landlords (22%) plan to sell at least one property from their portfolio over the coming year, with just 18% planning to buy additional properties to rent. They say tenants face a “perfect storm” with the supply of homes to rent set to fall as demand increases. Over the last year, the RLA found that 43% of landlords had increased rents and that 47% planned to increase them in the year ahead.


UK rents bounce back in July

Rents are gently rising again across the UK, after some months of small dips, and in Scotland rents are up a healthy 3.6% year-on-year. The UK’s 1.1% annual increase in July, compares to declines of 0.3% and 0.2% in May and June respectively, the first time rents had fallen in the UK since 2009. This suggests landlords now feel a little more confident than in the spring about seeking higher rents on their properties.


Landlords increasing rents hits 16-month high

Now that landlords are facing higher tax bills, many are starting to pass these costs on to their tenants, through rent increases. A study from the Association of Residential Lettings Agents (ARLA) shows that the number of landlords charging more is now at a 16-month high. This month’s data shows as many as 31% of letting agents across the UK have landlords who are increasing their rents. This is the highest level since April 2016, when the first of the taxation changes came into effect.


Buy-to-let decline may push up rents

There are signs that buy-to-let landlords are in retreat in the property market. The newly released TwentyCi National Homemover Audit shows a 25% drop in property exchanges for properties bought for buy-to-let. This drop over the past year has led to a fall in the number of homes coming into the private rented sector, adding to the growing supply-demand imbalance in the market, which may increase upward pressure on rents across the country.

Average rent now 84% of minimum wage

Scotland wide, average rents would now cost a full-time, minimum wage worker, 84% of their monthly pay. In July, the overall national average rent grew by 1.5% year on year (YOY) to £789 per month. Glasgow rents rose to £755 per month on average, and Edinburgh rents to £1,037 per month. In Dundee, West Lothian, Renfrewshire, and South Lanarkshire, rents rose by a slower 1%.


Weak 0.2% rental growth in Scotland

Rental growth in Scotland increased by 0.2% in the 12 months to June 2017, and has remained around zero since August 2016, says a report issued by the Office for National Statistics (ONS). This weak growth may be due to strong supply and weak demand in Scotland, the report suggests. Overall, rents in Britain’s private rental sector increased by 1.8% in the 12 months to June 2017, unchanged for the third consecutive month.