Private landlords always seem to suggest that the best place for properties is in the north, in towns or cities with good railway and other transport links. Could Edinburgh be one of these?
The average house price in the Scottish capital grew by over ten percent in Dec 2017 compared to the previous year. This means that if you bought a property with the intention of renting it out, not only would you be a further ten percent richer already, but you have the means to let out the property for higher rents. But how is that possible? Well, higher property prices mean that people will find it hard to buy. And this simply will drive up the housing market.
The value of the housing stock across the city grew by £7.5 billion over the same period – more than any other Local Authority district in the UK as a whole.
This figure was for lower-end properties – if you can call it that – that did not exceed two million pounds. The same, however, could not be said for the more expensive properties.
The £2 million-plus market was at its lowest level since 2004. This is quite unsurprising as a ten percent increase would add the price of a one–bed property on to an existing one. The Land and Buildings Transaction tax (LBTT), which would see £198,000 added on to the price of a transaction at this level.
There are certain areas in Edinburgh that rode the increase in prices. The southern hotspots of Grange, Morningside and Merchiston accounted for a total of 377 sales transactions last year.
Faisal Choudhry, head of residential research in Scotland for Savills, said: “Scotland has witnessed its strongest market since 2007, with price growth now outperforming London. Values will continue to rise due to a lack of supply and strong city economies. “In particular, Edinburgh’s residential market profile continues to excel. The lack of supply and strong domestic and international demand for property in the Capital is one of the main reasons behind a rise in prime values in Edinburgh City.”
If you have always thought of investing in property, but are put off by London prices, Edinburgh may be the new place to consider. The number of new build transactions in Edinburgh increased by 30 per cent last year.
The strongest growth in transactions last year was witnessed closer to the city centre, where experts said the redevelopment of the St James centre had attracted people towards the city centre.
This is another sign that city centres, with their transport links, remain attractive places to invest in.