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Buy-to-let opportunities in Scotland

Wednesday 3rd April 2013

With the demand for rental properties remaining strong and a good range of mortgage availability in the buy-to-let sector, now is a good time for potential landlords to consider entering the Scottish property market as an investment opportunity, according to Scotland-based independent property consultancy, CKD Galbraith, and independent mortgage broking firm, Springtide Capital

Alasdair Mackenzie of CKD Galbraith said: “There are a number of smaller properties for potential first-time landlords keen on dipping their toe into the market and seeing if it’s a sound investment for them. There are flats in popular student areas close to busy towns and city centres that attract young professionals who may be keen on renting first to get a feel for the area before committing to a purchase.

“As a firm we also have many large houses that we have brought to the market recently that are suitable for the buy-to-let market that may be of interest perhaps to landlords wishing to build their rental portfolio.”

Matthew Griffiths of Springtide Capital said: “The buy-to-let sector in Scotland has seen activity levels build up progressively from fairly modest levels due to high tenant demand at present.

“We have noticed an increased number of vendors taking the opportunity to let their current principle primary residences, converting their current residential mortgage to a let-to buy, extracting the required equity out of the property to assist with the onward purchase. This may be down to several factors including, a lack of interest in their property, a desire to hold on to the property if possible or purchasers not willing to pay the home report valuation.

“The combination of limited new housing supply and the affordability pressures facing potential home-buyers has pushed rents higher and thus providing a strong platform for a further expansion in landlord activity.”

Buy-to-let lending accounted for 11.5% of total gross mortgage lending in 2012, up from 9.8% in 2011, according to full-year data released by the Council of Mortgage Lenders at the start of March.

              

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