Growing number of English landlords investing in Scotland’s BTL sector

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There has been a notable rise in the number of English landlords investing in Scotland’s buy-to-let sector thanks to cheaper property prices north of the border, along with tax reliefs and higher yields, according to Touchstone.

Research by the property training firm found that 78% of its clients believe the best buy-to-let investment opportunities currently exist in Scotland.

In contrast, half of respondents - 50% - said they intend to target London’s buy-to-let market, while 53% opted for the South East and 49% for the South West of England.

Touchstone identified increasing rental yields north of the border as a primary reason as to why more people are investing in Scotland’s housing market.

The average rental yield returned to investors with property in Scotland has increased for the first time since March 2017, Your Move Scotland has found.

Fresh data from the letting agency reveals that the average rental property north of the border generated a return of 4.7% for its owners in March, higher than the 4.6% recorded a month earlier.

Consequently, landlord returns in Scotland are now at a six-month high. This is in contrast to England and Wales, where yields have held steady at an average of 4.3%.

Touchstone’s chief executive, Paul Smith, commented: “Central Scotland is now the focus of a great deal of activity. Edinburgh has always provided consistent returns, but Glasgow is now the city that’s setting the pace.

“There’s a great deal of excitement about its growing tech, creative and financial services sectors which are attracting young, affluent workers from elsewhere in the country.

“The main exception in Scotland is, of course, Aberdeen whose property market continues to be negatively affected by the downturn in the oil and gas industries.”

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