Why you should invest in Scotland…
For any buy-to-let property investor, the big question is always going to be where to choose to make that all-important purchase. If there’s one thing that’s been proven over recent years, Scotland is a top investment spot.
Over the past decade, the private rental sector in Scotland has increased two-fold in size, and landlords of buy-to-let properties in Scotland are enjoying impressive returns on their investment, with increased rental rates and returns of around 4.9% on average.
With this in mind, let’s take a closer look at why investing in Scotland is such an excellent choice.
A Thriving Rental Market
Many young people are finding themselves priced out of the property market, and with the need to pay high deposits, the number of first-time buyers among the Millennial age bracket has dropped significantly in recent years.
Therefore, the rental market is thriving, with people in their 20s and 30s now remaining in rented accommodation for far longer than ever before. As a result, potential buy-to-let investors in Scotland can reap the significant benefits, thanks to the availability of a wide pool of potential tenants and rising rental prices.
With an ever-increasing population that is set to grow by over 100,000 people within the next 20 years, Edinburgh is already the UK’s second biggest financial centre and has thriving tourism, retail and technology sectors. It also boasts the UK’s lowest levels of unemployment thanks to a booming economy.
Over a quarter of all Edinburgh’s residents live in privately rented accommodation – far above the country’s national average, and the numbers are steadily going up year-on-year. The city’s households are also growing in number more quickly than in any other city in Scotland, with a growth of over 6% in the past ten years.
Popularity With Home Seekers
Scotland remains a popular place to live among people of all ages who are looking for an excellent quality of life at a more affordable price. Thanks to the outstanding transport links to London and other major cities across the UK, Scotland is no longer an isolated spot, and with plenty of employment opportunities north of the border, it isn’t too surprising that increasing numbers of potential tenants are flocking to cities like Edinburgh in search of a cosmopolitan lifestyle away from England’s capital. All of this represents a major opportunity for would-be landlords who can tap into this increasing pool of tenants.
City Living In Scotland’s Capital
For any buy-to-let landlord, investing in the right area is key and Edinburgh represents the perfect investment opportunity Over the past three decades it has worked its way to the top of the tree in terms of becoming the most economically prosperous and successful city outside London.
There are various popular areas for property investment in the city, for example the EH11 postcode, with areas such as Dalry, Gorgie and Shandon lying south west of the city centre which offers potential tenants access to the wide variety of amenities such as restaurants and bars the bustling centre provides. It has been redesigned in recent years to be more family friendly, and popular with the professional market too, including younger generations who thrive in the city environment. Property prices in this area have also shown themselves to be more competitive, making this an opportune area to explore for investment. For example, three bedroom properties in this postcode achieved an average gross rental yield of 5.7% in the first quarter of 2021.