Market Analysis, Jan - March 2017 1st May 2017
The latest research (Citylets Q1 Report, 1st January – 31st March 2019) shows strong growth across the areas in which The Key Place operates.
Growth in the Central Belt is up on last quarter, at 4-5%. Edinburgh’s annual growth for this quarter sits at 5.2%, with West Lothian at 5.3%.
Scotland wide, average rents for 1 bedroom are £557, with an average time to let of 33 days. 2 bedroom properties are at £703 and time to let is 39 days. 3 bedrooms are at £994 and 35 days. And 4 bedrooms, £1495 and 32 days to let.
Looking at Edinburgh, rents remain high and time to let remains low. Average rents for a 1 bed property are £705, with an average time to let of 24 days. 2 bedrooms are £928, and 31 days. 3 bedrooms, £1347 and 23 days. And 4 bedrooms, £1861 and 17 days to let. Rent and time to let shows the desire particularly for 3 and 4 bedroom properties, which may be reflective of the student market.
The above shows that average rents in Edinburgh are back above the £1000 mark, at £1023 per month. This is up 5.2% on last year, although falls below the 6% 3 and 5 year trend.
Central Belt rents have risen year on year to an average of £656 per month. Perhaps not surprising given it has the highest population density within Scotland. It is also fast becoming a world leading business hub, and is easily commutable to both Edinburgh and Glasgow. These factors combined make it an ideal buy to let investment area.
The latest Your Move rental index confirms the trend, reporting an increase in rents throughout Scotland in March, and a particular strong demand for family houses. Your Move observed an annual rise of 3.8% year on year takes the average rent in Scotland to £565 per month. They note that yields remain high, with average yield levels of 5%, higher than then 4.9% recorded the previous month and in March 2016.
The Key Place has a wide spread of properties across the Central Belt, Edinburgh and the Lothian’s and the Scottish Borders. We have been experiencing extremely high demand for rental properties in all areas, particularly Midlothian where viewing numbers have overtaken Edinburgh viewing figures. Demand remains strong for all types of property across all areas.
With forthcoming changes to legislation and tax frameworks, it remains to be seen whether there will be any change to the supply of rental properties in the market. However for now the buy to let market certainly seems set for continued growth. As an investment class, residential property continues to outperform other asset classes, including ISAs and shares. As such, it poses a tempting prospect for anyone new to property investment, and existing landlords are already reaping the rewards, and adding to their portfolios. The Key Place is 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. Contact us now for further information.