According to the latest research from Sourced Capital, Scotland currently offers the best buy-to-let yields in the UK.
Buy-to-let yields here in Scotland are currently 5.8% with Glasgow hitting an average of 7.8% followed by West Dunbartonshire at 7.2% and Inverclyde at 7.1%.
Compare this to England, the average buy-to-let yield is just 4.1% with the Burnley hitting the highest average with 6.6%. Wales currently has the worst yields at 3.6%.
House prices in 2019 were generally stagnant in England, Wales and Northern Ireland with Scotland outperforming the rest of the UK. This was a result of Brexit uncertainty and also the slowdown in the run up to the General Election. Although the market seemed to stall somewhat, rental yields saw a boost due to a fall in property values coupled with high rental demand.
Late last year there was a flurry of activity with a strong market in January with both Zoopla and Rightmove reporting the highest ever activity from buyers. This also applied to investors looking to get a foot in the door and get a good deal before prices retain momentum and the returns tighten.
For those looking to invest, now is a great time to invest in property as the market is still finding its feet.
What’s more, it has been reported that the cost of buy-to-let mortgages has fallen year-on-year. This fall in the cost of borrowing is great news for landlords as they can move to more competitive fixed rate mortgages. The biggest drop has been for five-year fixed mortgages whereas falls for two-year fixed rate buy-to-let mortgage offers were more modest.
With the current record low rates on offer landlords should act fast as interest rates could rise back to more normal rates in the not too distant future.
The decision by the government four years ago to introduce a 3% surcharge on second homes caused a mini-boom as landlords rushed to buy properties to beat the deadline and many of these landlords are coming to the end of fixed-rate mortgages and will find that the market is more favourable.
If you are looking to invest in property, talk to us at The Mortgage Hub for the best possible deal for your circumstances.