Average rents in Scotland fell in May, with prices falling back ahead of the general election.
Average rents stood at £561 at the end of the month, a fall of 2.3% on the figure for the end of April.
The decline marks a reversal of fortunes for the Scottish rental market, which has seen growth over the past year. The worst affected region was Glasgow and Clyde, where rents have fallen year on year, with rents down 0.3%.
Annually, average yields in Scotland have shown no growth, currently sitting at 4.9%, exactly the same rate as May 2016 and fractionally on the 5% recorded in April.
Tenant finances will be a further source of worry for landlords, with 12.3% of tenancies in Scotland in arrears, up on the 11.3% recorded in April.
Brian Moran, Lettings Director at Your Move Scotland, suggested the general election may have been a factor.
He said; “With the general election taking centre stage throughout May, it should come as no surprise that rents ticked down from their previous level.”
Falling rents and more tenants falling into rental arrears will add to a growing list of financial worries for landlords, who are already coming under pressure from recent government reforms to the private rental sector.
The roll out of Section 24 and the increase in Stamp Duty on second homes are threatening landlords with significantly higher tax bills, while the ban on letting agent’s fees could potentially see agents passing these costs on to landlords.
If you’re a landlord concerned about the impact of recent tax changes on your finances, contact our team of expert advisors for a consultation on 0161 222 4311, or online at landlorddebtadvisory.com.