From Brexit, to a possible second independence referendum, to the snap General Election which will take place on June 8 to name but a few, there has been plenty of political upheaval and uncertainty that’s threatened the stability of the property sector. And yet the Scottish rental market has remained remarkably resilient in the first quarter of 2017, with positive growth taking place across various regions of the country.
What areas are proving most profitable?
According to a report carried out by Citylets, Glasgow remains a top area for buy to let investment. With average rent within the city sitting at £740pcm, the figure represents a 4.2% leap in rental figures over the past year; Glasgow lets are now higher than they’ve ever been, and are expected to continue climbing further into this year.
Commenting on the Glasgow rental market, which is predicted to outpace Aberdeen within the next quarter or two, Clyde Property’s Fiona Hindshaw said “it’s unlikely anyone would have predicted that even three years ago.”
“Q1 of 2017 has seen Glasgow’s buoyant rental market off to a flying start. Areas such as Glasgow’s vibrant West End are seeing record rental and sales values achieved so far in 2017, with Shawlands also riding the crest of this wave of strong market activity,” she said.
“More encouragingly, new landlords are still entering the market in strong numbers as property remains a sound investment, if made in the right location.”
The Capital and beyond
Elsewhere, Edinburgh reportedly continues to enjoy strong growth – with a 5.2% jump in rental figures. The average rental prices in the Capital also broke back through the £1000 barrier to £1023pcm after slipping under in Q4 of 2016.
West Lothian also posted positive growth results, with the average rent climbing 5.3% to £656 per month; the region is now said to be one of the most consistent risers in the country, which is attributed to the area’s proximity to Edinburgh, making it an increasingly popular choice for those looking to commute to the Capital.
In Dundee, rents did rise in Q4 last year but the average rental fell by 1.6% in Q1 of 2017 to £610pcm. However, overall figures have remained pretty stable, and it has generally been regarded that Dundee remains a worthwhile area to consider investment, with lots of opportunities available to those looking to invest in the private rental property market.
Aberdeen is of course the area which has witnessed the most seismic change in recent times, which is indeed due to the changes surrounding the oil industry. And while an 11.2% drop in growth to £768pcm may seem like an investor’s worst nightmare, it actually signals an improvement in growth for the third consecutive quarter, which now seems to be on track to level out towards the end of 2017; ultimately, as always in Aberdeen, oil price stability fuels the stability of the area’s property market.
Other areas offering strong yields
As well as the City Lets report, Clyde Property previously reported here on areas that offer good rental returns for buy-to-let investors. Take this townhouse in Perth, for instance. Already under offer, this three bedroomed end of terrace is on the market £30,000 below its Home Report value priced at £169,999. And we here at Clyde Property estimate that it has the potential to achieve £950pcm on the rental market, offering prospective investors an impressive 6% yield.
Thinking of investing?
Ultimately, the report carried out by Citylets demonstrates that the Scottish property market has remained stable, resilient, and in many areas, in growth. So with the potential to make some impressive returns on rental properties, coupled with current low interest mortgages, investors should consider buying now in order to capitalise on the strong market conditions.
So whether you’re thinking of taking your first step on to the buy-to-let ladder, or looking to expand your existing portfolio, we here at Clyde Property offer an unrivalled estate agency service, and are on hand to offer advice and guide you through the best of what’s on the market. Why not get in touch with your local Clyde Property office and see what investment opportunities lay ahead?
Clyde Property is a leading independent, multiple award winning estate and letting agent with 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today, for friendly, impartial advice on finding your next dream home.