Spotlight on Falkirk 1st Sep 2016
Falkirk is a vibrant town located in Central Scotland between Edinburgh and Glasgow. It is well placed for excellent motorway and rail links, and is close by the ports at Grangemouth and Rosyth. Edinburgh airport is only a 25 minute drive away. The town has a wealth of local amenities. Falkirk is the home of the Kelpies (the largest horse sculptures in the world), the Falkirk Wheel (the world’s only rotating boat lift), and of the course the mighty Falkirk FC (of which The Key Place chief exec Robert Young is a fan!).
Falkirk town has a population of approx. 35,000. Employment is mainly in the retail and service industries, with large employment at the petrochemical plant in Grangemouth. Business analysts are suggesting that Scotland's Central Belt is set to be one of world's richest business hubs with 7 million residents by 2025. It has the highest population density within Scotland, thus presenting itself as an ideal buy-to-let investment area.
Looking at housing, 15 years ago 60.5% of properties were owner occupied; 29.6% of properties were rented from the council; and 2.7% of properties were rented out by private landlords. Fast forward to 2016 and the shift has been seismic. 64.7% of properties are owner occupied, only 22.5% are rented from the Council, and the jump in private rented housing has been phenomenal at 7.3%.
Furthermore property values have increased over the last 20 years by 265.94%. For a long time, buy to let has been heavily dependent on house price growth, where yield has almost been forgotten. For investors, Falkirk is well worth consideration, as capital growth, along with a good yield is possible. The average yield in Falkirk is 5.7% per annum. For specialist type properties, even higher yields are possible. This means potentially (depending on the investment property), landlords can earn before costs £10,260 per annum. Looking again at property values – these have risen by, on average, 2.4% per annum over the last five years, meaning that on top of your £10,260 in rent, you could see an uplift of £4,320 … meaning the overall return for the year would be £14,580.
The introduction of the Land & Buildings Transaction Tax (LBTT), along with forthcoming changes to tax relief, and the introduction of the new tenancy laws will bring opportunity to many investors. Some will choose to get out of the buy to let game all together.
However along with the rest of Scotland, demand for rental property in Falkirk is far outstripping supply. Minimal new homes are being built and fewer properties are coming to market. And bear in mind you can buy an investment property that will enjoy both capital growth and a great rental yield. Investors, what’s not to love about Falkirk?
The buy to let market in Falkirk certainly seems set for continued growth. It poses a tempting prospect for anyone new to property investment, and existing landlords are already reaping the rewards, and adding to their portfolios. We are always on the lookout for new landlords. If you would like any information on the services we offer then please get in touch. The Key Place is also keen to work with people considering buy to let investing. We can help can source high yield properties in the areas in which you want to buy, find the best mortgage, complete the acquisition and fully manage your investment.
Why not pop in and see us in our offices in Falkirk town centre? You can find us at 6 Vicar Street. Helene Wilkinson our Manager, and Linsey Miller our Letting Agent will be delighted to welcome you – the kettle is always on.