Buy To Let Propery
Investment In Edinburgh
1. Right City
Edinburgh has come a long way over the last 30 years to become the UK’s most economically successful and prosperous city outside London and is continuing an upward trajectory. The city’s population grew by over 50,000 in the last 10 years and is expected to grow by a further 100,000 over the next 20 years. Edinburgh is Scotland’s second largest city economy with the second largest financial centre in the UK and thriving technology, retail and tourism sectors.
2. Right People
In recent years Edinburgh has had the lowest unemployment in the United Kingdom and the third highest number of people in employment at 75.6%. This is despite the high number of students and early retirees living in Edinburgh. Half the inhabitants are aged 16-49, much higher than the national average. In some areas popular with renters, the proportion of those aged 16-49 is much higher; in the Leith Walk area for example 81.3% of residents are aged 16-49. Edinburgh is a wealthy city with the average resident having £21,800 of disposable income.
Edinburgh is a well-known centre of excellence for education with 43,000 undergraduates and 17,000 postgraduates enrolled and residing in the city providing excellent opportunity for investors. Edinburgh also has the highest retention of students post degree completion in the UK.
68% of properties in Edinburgh are flats yet it still manages to have one of the lowest population densities of any city in the UK. Certain key areas have a very high density and tend to be ripe for investment such as Leith, which has the highest density in Scotland. Edinburgh’s well known for its picturesque image and the city has the highest number of green spaces in the UK at 49% of its area.
Edinburgh’s economy is booming with a 21.2% growth since the turn of the century. The large number of big businesses residing in Edinburgh requires a work force to match meaning 63.9% of residents have a been educated to higher education level. Edinburgh has a highly successful tourist industry generating significant economic activity and revenue. Financial and insurance companies compete strongly with the public and tourist sectors as major employers.
5. Real Estate
Real estate is a key component of the Edinburgh economy with high levels of foreign direct investment adding to internal investment. Real estate accounts for 12% of Edinburgh’s economy adding over £2 billion per annum to the economy. 26% of people (2016) live in private rentals which is well above the national average and that number is increasing. The city also has the highest growth in number of households in Scotland at 7.2% over the last 10 years. There is a high turnover in Edinburgh with 12,190 properties being sold a year and prices are high with an average sale price of £199,490.
Where to Invest in Edinburgh
Stockbridge is a village in the heart of Edinburgh and is one of the most sought-after areas to live. It is consistently voted as one of the best places to live in Scotland. Highlights include the Water of Leith which runs through its midst, the expanse of Inverleith parks, the farmers market and the quirky shops, restaurants and cafes.
Stockbridge is a stable market with high rents, but high property prices can mean lower yields for newer investors. This stability does mean your capital value may be more protected from cycles in the market. The market is not overly saturated with too many people living in the area giving it a nice community feel. This is a great place for young professionals, with quick access to town and business areas.
Voted in the top 20 “coolest” places to live in the world, Leith has it all. With a high-density population rental is booming in Leith and this has seen rental and property values rise quickly. Highlights include The Shore which provides Leith with waterfront living, Leith Walk’s eclectic collection of shops, bars and restaurants and Leith Links which has great open spaces and is the original home of golf.
Leith is an area that investors are increasingly targeting, for reasonable prices and high yields. The population of Leith is young and upwardly mobile and many people working in the city find it attractive.
Gorgie and Dalry are similar to Leith but on the opposite side of the centre to the West. Located close to the city centre the area is also a rental hotspot for people who work in the city, study at the surrounding universities or commute to Edinburgh Park. Highlights include the range of shopping choices, key transport links for rail, buses and trams at Haymarket and the green spaces of Saughton Park.
Gorgie and Dalry has long been an area people have invested in to gain high yields for reasonable prices. Large numbers of students and young professionals come to the area for its accessibility and prices creating high demand for rental property making it a good area to invest in.
Sometimes investing in property comes down to personal choice, budgets and timing. Investors looking for hard facts to back up those decisions or help them understand the best areas to invest in letting in Edinburgh often choose to work closely with a trusted letting agent as a partner. We can help investors by simply marketing your property once secured, renovating it to a high standard to attract the best tenants or by working with you to source the right property from the start.
As one of the few Edinburgh letting agents to be fully regulated you can trust our advice.