Investing In property in edinburgh
Is it a good time to invest in an Edinburgh buy-to-let? Uncertainty caused by the COVID-19 pandemic and the rising cost of living means many property investors have been cautious about expanding their portfolios in recent months.
New investors too have been waiting to see how the future pans out post-pandemic but the latest Rightmove Rental Trends Tracker, released on 14 July, paints a promising picture throughout the UK - and Scotland is one area that’s really flourishing.
Are Rising Rents and Few Rental Properties Leading To A Perfect Storm?
Steadily rising rents, coupled with fewer rental properties coming onto the market, provide an ideal environment for investment. Anyone buying a property can be reassured that there are plenty of tenants looking for homes and they are likely to make a good monthly return on their investment.
Across the UK, average monthly rents are 40% higher than 10 years ago while average monthly mortgage payments have increased by just 13% so investors can take confidence from past market performance.
Shortage Of Rental Properties Driving Up Competition
The shortage of rental properties continues to bite, driving up rents. Competition is fierce, and many properties are snapped up before they even reach the market. Organised tenants ensure they’re registered with letting agents to receive advance notice when a property becomes available.
Demand continues to exceed last year’s exceptional levels – property stock is now down 26% across the UK while demand is up 6%. Rightmove has revised its prediction of rental growth increasing by 5% by the end of 2022, it now believes the rise will be 8%.
Average Rental Yield In Scotland Continues To Rise
Scotland now has an average rental yield of 7.3%, second only in the UK to the North East of England. Rightmove’s report shows landlords have not been deterred by challenges such as legislation changes and potential upgrades to EPC requirements.
Despite the possibility of having to make improvements to homes to fulfil the new criteria, a third of landlords surveyed by Rightmove said they planned to expand their property portfolio over the next 12 months compared to 11% who intend to reduce the number of homes they rent out.
Expect Advice On The Edinburgh Rental Market
A buoyant market is good news for Edinburgh’s property investors but it’s still important to take expert advice before buying. Investing in a property in a less desirable area of the city or buying something that needs a lot of work to bring it up to the required standard can impact the potential yield.
Clan Gordon has been advising investors and looking after property portfolios in Edinburgh for more than 15 years and is well placed to provide expert advice and guidance. Often the most desirable properties are sold off-market and Clan Gordon is frequently made aware of such sales, offering investors within our network early opportunities to put in a bid.
To find out more, schedule a call with one of our expert property advisors here.