Insight. Investment

Investing in Scotland

Why there are opportunities abundant from the lowlands to the highlands

For any investor with an eye on staking their finances in the UK property market, the biggest question will always be “whereabouts should I put my money…and why?”

Once upon a time the answer was simple. Anyone who could afford even a minute percentage of a London building should invest immediately. Failing that, anywhere in the Home Counties remotely near a train station would suffice. But with South-East property prices continuing to rise and rental yields remaining fairly stagnant year-on-year, for some time now people have been looking far further north for more sensible investment opportunities.

With its buzzing cities, academic draw and world-beating scenery to match, Scotland offers a potential all of its own. Here’s a few more solid reasons why investing here makes sound financial sense.

A booming rental market

Whilst still nowhere near Greater London prices, cities such as Edinburgh and Glasgow have seen a marked increase in property prices over the last decade.

Some have been able to buy. But with high deposits required and both cities and others such as Aberdeen heavily populated by students, a thriving rental market has developed within the 18-35 age bracket. All of which has led to healthy average rental yields of around 5% for buy-to-let investors keen to build their Scottish property portfolio.

Quality of life is a real deal-sealer

It’s no exaggeration to state that when it comes to places of natural beauty, parts of Scotland compete with almost anywhere in the world.

It’s no surprise then that from its Western lochs, to glorious highlands and stunning hills surrounding Edinburgh, more and more people are choosing where they live based upon fresh air quality and the scenery they can wake up to each morning. With remote working and plenty more employment opportunities now attracting more and more people to these areas, it’s worthwhile any aspirational landlord investigating further.

Home-seekers a’plenty

As we touched upon in a previous blog, Northern England[1]  offers many benefits to home bird renters who place community far above cosmopolitan vibes. Scotland provides exactly the same plus-points, and with Edinburgh the most economically successful UK city outside of London anyway, for many local professionals unable to buy it literally makes no sense to pay extortionate rental prices down south for a lifestyle they perceive to be detrimental to that which they already living. Thus if you can afford to do buy them, there’s a growing group of longer-term tenants prepared to pay higher rents to live in the nicer properties on the market.