Craig Beattie, Aldermore Relationship Manager for Scotland:
With an average yield of 6.4%, continued capital growth and multiple tenancy options, Edinburgh is a desirable location for landlords north and south of the border to invest in. And this was confirmed by our new Buy to Let City Tracker1, looking at 25 cities across the UK to understand the best places for landlords to invest in, which put Edinburgh in third place, behind Oxford and Manchester.
It scores highest on short-term return due to high rental prices (£539 per room per month) vs. average house prices. However property prices are not rising as quickly as other areas so long-term return scores less.
From let to buy, homes of multiple occupancy, housing association lets through to bulk portfolios lending, these are all areas we have helped landlords within the EH postcode in 2019 and will continue to in 2020.
I asked Randal McLister, Head of Mortgage Services at Mortgage & Protection Advisor for his view. He said that Edinburgh's buy to let market has and will continue to be strong due to the diverse nature of the city:
“As a landlord, you have the ability to either single out a particular tenant base or diversify depending on the season (or the properties you have in your portfolio). The three main tenant bases are made up of the people that call Edinburgh home, the ever growing student population, and the year round festival goers. All three yield well for landlords and this alongside strong capital growth makes investment property in Edinburgh very attractive and why there has been so much inward investment here in recent years.”
1 Aldermore’s Buy-to-Let City Tracker was designed by Opinium and comprises of five core indicators: average rent per room per month, short-term yield for a new buy-to-let purchase, average property price rise over the last 10 years, proportion of vacant properties in the city and size of the private rental market. The index uses a series of secondary data sources including the ONS, Census and other official housing statistics. To read more visit https://www.aldermore.co.uk/about-us/newsroom/2019/12/oxford-tops-the-list-for-buy-to-let-investment-as-hidden-gems-revealed-across-the-uk/
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