20 May 2019
Edinburgh is now the best place to be in the UK for property landlords when it comes to increased rental returns.
capital is reported to have the highest rental growth in Britain - up 5.44%
year-on-year to an average £1,107 a month.
Glasgow also featured prominently in the Landbay rental index, taking fifth place in the top 10 with growth of 2.59% to a typical monthly rent of £711.
The average rent for a property in the UK grew by 0.96% to £1,218 in the 12 months to April, as slow rents in London (+0.66% to £1,906) contrasted with resilient rental growth in the rest of the UK (+1.11% to £773).
Meanwhile, other new research shows that nearly four-fifths of all landlords have either all or most of their rental properties within a 50-mile radius of where they live.
However, those with bigger portfolios were found to be more likely to look further afield.
Jeff Knight, of Foundation Home Loans, said:
"We've heard a lot lately about landlords looking beyond their own regions when it comes to adding to portfolios and seeking investments that perhaps can deliver them a greater yield in a different part of the country.
"What our research appears to show though is that, for the vast majority of landlords, this doesn't ring true and most are sticking to the areas they know best, with many having all their properties within an area close to where they live.
"This makes perfect sense given the advice that has been offered to landlords over the years, which is to invest in the areas they know.
"That said, the bigger portfolio landlords are much more likely to own properties further afield, possibly because they can spread the risk and they may have much more time to carry out all the necessary research and due diligence before they make an investment decision.”
The study also highlights the means by which landlords are increasingly likely to add to portfolios.
Over half said they intend to purchase their next buy-to-let property through a limited company, rising to seven in 10 for landlords with a double-figure number of properties in a portfolio.
Mr Knight added: "There's no doubting that the major growth area of buy-to-let is the use of limited company vehicles, particularly for purchases but also increasingly for remortgaging. More and more landlords are adding to their portfolios through a limited company in order to ensure they can secure full tax relief on mortgage payments."
In conjunction with the launch of their new ‘Guaranteed Rent Payment’ service, Aberdein Considine are hosting a number of free landlord open days across the central belt.
To find out more and to sign up to an event near you, click one of the following events: