Why Buy to Let Edinburgh is rapidly rising?

by Readers Question

7:05 AM, 26th October 2018
About 3 weeks ago

Why Buy to Let Edinburgh is rapidly rising?

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Why Buy to Let Edinburgh is rapidly rising?

Being a resident of Edinburgh, I can assure you that this city is a great choice to buy to let. This is because this thriving city has everything to attract students, tourists, and professionals alike. Following are some reasons why so many people from all over the world are looking to buy to let in Edinburgh:

Booming businesses – With over hundreds of businesses blooming in the city, Edinburgh is Europe’s 4th largest financial center. That’s why many young professionals from various parts of the world flock to this city to flourish their careers, and most actively looking for buying to let.

Student-friendly – Due to a large number of educational universities and institutes in the city, many students are attracted to Edinburgh. With the increasing number of the student population, the demand for suitable accommodation is also on the rise.

Tourism – Edinburgh is a tourist hotspot, and buying property to rent out to holiday makers is a big business here.

Andrew



Comments

Neil Patterson

9:11 AM, 26th October 2018
About 3 weeks ago

Obviously a fan of Edinburgh, and why not, a great city.

Although half my family were from Aberdeen 🙂

Dylan Morris

10:35 AM, 26th October 2018
About 3 weeks ago

Are there not issues for landlords in Scotland. Licensing of properties, three year tenancies etc ??

AA

12:00 PM, 26th October 2018
About 3 weeks ago

Indefinite tenancies, compliance and legislation which makes anything south of Hadrian's Wall look like the wild west. Remember the SNP are left of North Korea.

Annie Landlord

12:38 PM, 26th October 2018
About 3 weeks ago

I have family connections with Edinburgh. One family member was paying over £1000pcm for a ramshackle one bed flat in the city centre. The cheapest possible tiny one bed flats are circa £200,000 to buy. It thrives due to its reputation as a financial centre and through tourism, and the reputation of its universities. The new tenancy agreements, which don't allow 10 month tenancies, have affected student lettings and who knows what the effect will be on the festival, when zillions of people look for accommodation in August. I believe the new style S21 still allows possession in the case of rent arrears or damage and when the landlord wants to sell or move back in. So not all bad, but lower income people struggle

AA

15:39 PM, 26th October 2018
About 3 weeks ago

Its all up in the air. With the new Scottish PRT rents rose by 17-28%. With no lock in period LLs hiked rents for a potential void period in July, but also for reasons to make it costly so students would leave after exams making the property available for short / Edinburgh festival let. But there is a huge shortage of available properties as many landlords sold up with the onslaught of compliance legislation being turned out by the Scottish Executive and s24.
It is no duck walk. A 1 bed at £200k is correct but the median rent is circa £750PCM. This would make it difficult to breakeven with say a 25% deposit.
(Stress test at 4%).
And the knockout punch just around the corner - SE and council discussing introducing legislation the requirement for planning permission re change of use of premises if you short let property. Many owner occupiers have complained about living next to Air BnB ' s. So the headlines may say the sun is shining today, but it is for today and today alone.

Scottish Landlord

13:21 PM, 27th October 2018
About 3 weeks ago

As an Edinburgh resident myself…I find this is a bit of a strange article:

- no mention of rent controls
- no mention of the new tenancy legislation that penalises students and festival goers
- no mention of legislative breaks for big business landlords
- no mention of the withdrawal of no fault end of tenancies
- no mention of the higher tax rate landlords pay in Scotland
- no mention of the additional licensing conditions
- no mention of the legislation under consideration that will halt short-term letting like AirBnb

…all the above considerations are active now.

Can’t disagree with the sentiment but find this article bizarre given the number of measures in force in Edinburgh that are not in place elsewhere in the UK.

AA

15:58 PM, 27th October 2018
About 3 weeks ago

Reply to the comment left by Scottish Landlord at 27/10/2018 - 13:21
Maybe the author had a wee dram before he started writing 😊


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