Property Investment In Edinburgh – Is Now The Right Time To Buy?

Investing In property in edinburgh

The UK government’s stamp duty holiday in England and Northern Ireland finally came to an end on September 30th, levelling the tax playing field once again for house buyers across the whole of the UK. In Scotland, purchases up to £250,000 were tax-free until March 31st, but what will happen to the property market now all the incentives have been exhausted, and is now a good time to buy?

Property still offers one of the best returns on investment due to low interest rates and rising house prices, so those considering buy-to-let purchases are in a strong position. Competitive mortgage deals with two to five-year fixed terms are a strong incentive to buy, and demand for bigger properties is already outstripping supply, creating a buoyant and competitive market. 

Lenders are offering rates below 1% on regular mortgages to those with sizeable deposits. Many buy-to-let mortgages also require a big down payment to achieve the best rates, so for anyone with a big cash deposit who’s waiting for the right time to buy, it could be now.

In Edinburgh, the return of the student population and increased numbers of tourists and business visitors means rental property is in high demand, but for professional couples and families looking to rent, there has been a shift in demand – and this could influence the types of properties investors choose to buy.

Changes in home working patterns have influenced 2021 property investment opportunities

The advent of home working post-Covid means it’s not only growing families who are looking for additional bedrooms and more living space. The desire for a home office is now high on many renters’ wish lists which means bigger properties are in high demand. 

City centre flats are still amongst the most sought-after properties in Edinburgh, and it’s important to be aware of current market trends when you’re looking to invest, which is where Clan Gordon can step in. Edinburgh’s leading letting agent has extensive experience in the rental marketplace and can help investors to make the right decision on location, property type and time to buy.

Clan Gordon supports investors through the whole process from start to finish, from purchase, through any renovation or redecoration required, furnishing, finding good quality tenants and even managing the property throughout the tenancy. 

Investment Opportunities Abundant As Property Prices Continue To Rise

Buyers’ demands, coupled with government incentives, have pushed up UK property prices by more than 10% over the past 12 months. While the rise is expected to slow into 2022, many experts believe prices will continue to increase – a good sign for savvy investors. The Nationwide Building Society reported a jump in house prices of 2.1% in August – the second biggest hike in 15 years – which was attributed to demand exceeding supply. 

Green mortgage incentives available on energy-efficient properties

The low Bank of England base rate means there are some great deals available, and some lenders are also offering incentives to those buying more energy-efficient properties with high EPC ratings. 

Green mortgages are now offered by many banks and building societies since first being launched by Barclays in 2018, and some are available for buy-to-let purchases. 

Research shows that three in five landlords are interested in making greener investments, and a handful of lenders have responded with specific buy-to-let products. 

Specialist buy-to-let lender Keystone will reduce its standard buy-to-let interest rate by 0.15 per cent for landlords with properties more than five years old with an energy performance rating of A to C.

And The Mortgage Works, Nationwide’s buy-to-let subsidiary, has launched a 1.49% loan that buyers can take out on top of their mortgage to fund sustainable improvements such as solar panels or boiler replacement.

Currently, only half a dozen lenders are offering green incentives for buy-to-let customers, with some only available on remortgages, but more may soon come onto the market – especially if minimum EPC requirements for rental properties are raised. 

So is it a good time to buy an investment property in Edinburgh? The picture certainly looks promising. If you want to know where the best property investment opportunities are right now in the city, schedule a call with Clan Gordon for experienced market insight from our property team, who know where to buy and what tenants are looking for right now.



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