Edinburgh and Glasgow are both named in a survey of the UK’s hottest cities for property investment in 2021, highlighting Scotland’s potential for those with plans to extend their portfolios or make a one-off investment purchase.
The two are amongst 10 towns and cities identified by UK property developer SevenCapital as the prime locations to make investments that will give the greatest rental yield and growth over the next few years.
With interest rates low, property has long been viewed as the best way to grow an investment. But for the amateur investor, it’s hard to know where to buy. According to SevenCapital, the south provides fewer opportunities for would-be investors. Indeed, their shortlist strays only as far south as Bracknell in Berkshire – hardly surprising when the average property price even that far north of London is £383,788!
Leeds, Manchester, Birmingham, Liverpool, Nottingham and Sheffield all make the cut, with the northerly cities of Newcastle, Glasgow and Edinburgh completing the 10. At £194,545, Glasgow has one of the lowest average prices – reinforcing its potential for investment. SevenCapital estimates a rental yield of 5.2% and a price growth in five years of 15.05%.
Edinburgh is a different story. The average property price is £333,691 – not far off the Bracknell average – but the rental yield is 4.19% and predicted five-year growth is 12.33%. Both cities provide a great opportunity to invest, although fewer houses and flats in prime rental locations become available to buy in Edinburgh so finding the right property could be more of a challenge.
Both Glasgow and Edinburgh possess many of the key attributes needed for a profitable rental property – great transport links, access to quality shopping and socialising and good schools. A combination of these makes for the perfect investment property because it will appeal to a wide range of tenants, from young professionals to families with children.
Indeed, most of the locations named by SevenCapital are bustling hubs where demand for rental property is likely to be high. So which areas of the UK have seen the biggest property price jumps in recent months?
The COVID-19 pandemic certainly hit the property market earlier in the year, but the stamp duty reduction has produced a steady growth and the Nationwide building society reported the biggest rise in house prices in more than 16 years in August.
The government has temporarily increased the stamp duty threshold in England and Northern Ireland to £500,000 for property sales until 31 March 2021, but it only applies if you’re buying a main residence – not an investment property to rent out.
If you’re thinking of buying a rental property in Edinburgh and need a helping hand, Edinburgh letting agent Clan Gordon prides itself on the personal touch and offers an unrivalled service to landlords and tenants alike.
Clan Gordon manages more than 550 properties in Edinburgh, with 100% of landlords and 97% of tenants saying they trust them with the management of their property. Call today on 0131 555 4444 to find out why!