Prices remain competitive in Scotland compared to the rest of the UK and the rental sector continues to show signs of growth at a time of low interest rates and volatile stock markets. The latest Registers of Scotland monthly house price statistics show that the average price of residential property in Scotland rose by 2.6 per cent in April compared to the same time last year. This increase could spell good news for landlords seeking capital appreciation on their investment. With rents remaining high, CKD Galbraith believes now is an optimum time for buyto-let investors to consider the Scottish private rental market. Galbraith has experienced an 11 per cent increase in tenant demand for rental property over the previous quarter (January-March) compared to the same quarter in 2016. Bob Cherry, head of lettings and a partner at Galbraith believes the rental market is still an attractive investment alternative with yield levels remaining strong at around four-five per cent. “Landlords have been impacted by a range of legislative changes over the past couple of years, not least the introduction of a three per cent tax on buy-to-let properties and the new tenancy act passed last year. But rents continue to perform well with fewer incidences of late or non-payment of rent. “Market conditions, including landlord supply and tenant demand, determine rental prices and this must be carefully considered but with property prices in Scotland currently on the up, I believe the buy-to-let property market is a viable investment option for those looking to invest in bricks and mortar, as well as offering exciting potential for landlords wishing to grow their portfolio.”
