Residential income on Scottish rural estates

In 2012, the residential sector provided the main income source on rural estates for the first time.

16 January 2013, Words by Ian Bailey

 

Residential

The let residential sector continues to make a significant contribution to estate incomes and represented almost 40% of gross income in 2012, which amounted to £36 per lowland acre (£89 per ha), compared with 36% in 2009. Home ownership affordability problems, as predicted, are benefitting the residential rental sector.

There is evidence of restructuring activity in 2012, with reversions to Short Assured Tenancies (SATs), particularly from agricultural tenancies, which is an outcome of farm rent negotiations.

SAT’s now represent 46% of all housing stock, compared with 41%in 2009, whilst the proportion of houses within agricultural tenancies has fallen from 39% in 2009 to 31% in 2012.

Around 10% of rural estates’ housing stock is let on protected tenancies, reflecting the level of subsidised affordable housing for key workers that estates provide to the local rural economy.

Our survey shows that the average SAT rent increased from £5,492 in 2011 to £5,799 per dwelling in 2012, reflecting 5.6% rental growth. This growth has been dampened by under-rented properties resumed from agricultural tenancies. Protected tenancy rents remained static at around £3,500 per dwelling.

 

 
 

Key Contacts

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

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