According to data from the Your Move Scottish buy-to-let index, the lettings market in Scotland got off to a strong start in 2017 with average rents at £571 per month with Edinburgh and the Lothians seeing substantial growth.
At the same time, a new study by property website Zoopla revealed that Edinburgh is the most sought-after place to live in the UK with estate agents in the city receiving 145% more enquiries from prospective buyers than the UK average.
There’s plenty going on in Edinburgh. It’s one of the most visited cities in Scotland and also one of the most expensive places to live in Scotland with prices expected to rise by a fifth (20%) by 2021.
The financial and tourism capital is enjoying healthy employment growth while Edinburgh is also experiencing the highest rate of business start-ups per capita in Scotland (with nearly 88 businesses set up each year per 10,000 working age population). The city is also predicted to see one of the highest population growth rates over the next five years at 4.5%.
All of this activity will increase pressure on housing and now is the time to snap up property before prices rise. According to information released by Barclays UK Property Predictor in May 2017, Edinburgh will see 20.2% growth in average house prices by 2021.
According to Zoopla, the average property value in Inverness is now almost £184,000 – this shows a rise of more than 5% over the last twelve months with house prices in the city becoming beyond the reach of many first-time buyers.
The result of this is an increase in the rental sector, yet the city, which benefits from the Aberdeenshire oil industry, has yet to be swamped by property investors and offers plenty of potential for lucrative purchases.
One of Scotland’s most historic cities, Stirling recently obtained a City Deal of around £500m, which includes the creation of a digital district, city park and regeneration of the harbour and River Forth. It’s estimated the deal will generate 3000 new jobs and boost tourism by 25%.
The city is already popular, with its own castle and rich heritage, and as it regenerates, house prices are expected to rise by almost a fifth (19%) across the next five years. The population of Stirling currently enjoys high earnings, making it a prime location for young professionals looking to rent.
An ideal place for young families to make a home, East Renfrewshire boasts excellent schools and has the distinction of having a large proportion of highly qualified residents with 53% of its population educated to degree level or higher.
An affluent area to the south of Glasgow, average house prices in East Renfrewshire are set to rise by almost a quarter (23.8%) by 2021 according to Barclays UK Property Predictor.
Like Stirling and East Renfrewshire, the population of East Dunbartonshire, situated to the north of Glasgow, enjoy earnings ranging from 6% to 28% higher than the UK national average.
Containing two of Scotland’s most affluent suburbs, Milngavie and Bearsden, East Dunbartonshire is home to some of the country’s best schools, which are regularly ranked in Scotland’s top ten. The district also has a thriving retirement community.
Similarly to East Renfrewshire, East Dunbartonshire is in easy commuting distance of Glasgow, and its average house prices are likely to increase by almost a quarter (22.5%) by 2021.
More property investment hotspots across the UK
To find out where those property hotspots are south of the border, take a look at our previous posts on property investment in North and South England and the Midlands.
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