A notable rise in the number of English landlords investing in property in Scotland has been recorded, thanks to cheaper house prices north of the border, along with tax reliefs and higher rental yields, according to Touchstone.
Research by the property training firm found that 78% of its clients believe that the best buy-to-let investment opportunities can be found in Scotland.
However, half of respondents said that they intend to target London’s buy-to-let market, while 53% prefer the South East and 49% the South West.
Touchstone identified increasing rental yields north of the border as a leading cause of English landlords’ investment in Scotland.
The average rental yield in Scotland has risen for the first time since March 2017, according to Your Move Scotland.
New data from the letting agent shows that the average rental property north of the border generated a return of 4.7% for landlords in March this year, which is higher than the 4.6% recorded in the previous month.
Consequently, rental returns in Scotland are now at a six-month high. This contrasts to England and Wales, where yields have held steady, at an average of 4.3%.
The Chief Executive of Touchstone, Paul Smith, says: “Central Scotland is now the focus of a great deal of activity. Edinburgh has always provided consistent returns, but Glasgow is now the city that’s setting the pace.
“There’s a great deal of excitement about its growing tech, creative and financial services sectors, which are attracting young, affluent workers from elsewhere in the country.
He adds: “The main exception in Scotland is, of course, Aberdeen, whose property market continues to be negatively affected by the downturn in the oil and gas industries.”
English landlords, do you own properties north of the border? If not, do you plan on taking your investment portfolio to Scotland?