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Scotland a Better BTL Investment Opportunity than England

If you’re looking to expand your portfolio or only now entering the world of BTL for students, you may wish to consider Scotland rather than England. In all areas of the BTL property market, not just students, landlords enjoy far higher yields according to a recent report from the Scotland Buy-To-Let Index from Your Move, and it’s drawing attention from England too.

 

The Scottish BTL Statistics

According to the report released earlier this month, the average rent in Scotland (general population) is £570 per month calculated in March and rising at a rate of 0.2% per month. Yields are relatively high despite this average rent cost being lower than England & Wales with most reporting a yield of 4.7%. The comparative yield for England & Wales is 4.4%. Rent yield is defined as the annual rental income calculated as a percentage of the value of the property. Only the northwest and northeast of England came close to producing such a high yield.

 

Time to Invest?

The situation in Scotland has proven stable investment over the last 12 months with high yields and stability in the BTL property market, proving a relief when the situation in England & Wales if proving a concern and other assets are feeling the pinch. As a result, many agents and mortgage lenders expect a steady increase in the BTL market for Scotland going forward. With student property proving one of the most reliable forms of income and high yield, there has never been a better time to expand your portfolio of student property.

 

Pick Your Region Carefully

Understandably (and perhaps unsurprisingly) there is disparity across Scotland. Rents are highest in the capital, Edinburgh, home to the University of Edinburgh, Queen Mary’s, Heriot-Watt and three other institutes. Average rent here was £668 per calendar month. However, the East of Scotland had some of the lowest rents at £533 per month, a region that includes Scotland’s top university, St Andrew’s. The area with the fastest rent growth was Glasgow which is home to University of Glasgow and University of Strathclyde. Rent is present £584 per month and growing at a rate of 3% per year. There is no better time than to invest in Glasgow student property.

 

Other Benefits of Scotland Student BTL

Finally, the report highlighted the low level of rent defaults, pointing to a new equilibrium between income and rent expenditure. Students represent a good investment in terms of reliability; they may have little cash flow in real terms, but they often have supplementary income from their parents. Couple that with the fact that Scottish students don’t pay tuition fees and you have a reliable income virtually guaranteed each year.