News & EventsWho? What? Where? Why? Read all about it here!

Get the Latest


Property Investment ‘Set for a Return’

A property expert believes there are hopes the buy-to-let market will begin a mini revival in the market, particularly for first time sellers looking to move upmarket and the snowball impact thereafter.

Matthew Gray, property director at leading legal, financial and property specialists Pagan Osborne, has said the increase in buy-to-let mortgages, reasonable property prices and an ever-increasing demand for rental accommodation are driving the market back onto a stronger footing.

It has been revealed that buying a home is 6% cheaper than renting, with the Bank of Scotland saying buying costs fell by 6% in 2011 with rental costs increasing by 1%.

The Co-operative Bank reported buy-to-let mortgage lending has soared by ten times in 2011 to around £650m a year. It has been reported banks are now more open to buy-to-let mortgages, relaxing the criteria and keen to bring these investors back into the market.

Matthew said:

“This flicker of life in the property investment market is very welcome in deed. Often this is the last group out and first group back in when there is a dip so we would hope their return would signal the beginning of a wider upturn.”

The latest Citylets rental report showed the number of lets increased by 17.5% year-on-year and the Scottish average rental income reached a high of £670 and half of properties were let within four weeks, with smaller flats being let quicker than larger properties. In Edinburgh, the rental yield increased by 4.1% to £783.

Andrew Milne, a partner at surveyors DM Hall, said:

“Demand for rental accommodation continues to increase and is not confined to any specific sector of the housing market. Demand is outstripping supply therefore rents continue to rise.

“For some investors, money in the bank is not producing a high enough return and the alternatives are too risky with the stock market proving volatile. Property is seen to  be relatively safe, particularly if purchased at the right time in the right area and after taking proper advice.

“Lenders are being drawn back into the buy-to-let market so funds should be available to the right applicant. Most are imposing some sort of lending restriction and there will also be strict criteria to meet but where the investment is well thought out and well planned, opportunities certainly exist.”

Matthew added:

“The demand for rental income is at its peak for a generation meaning a premium yield can be achieved – this might be good news for the landlords but not particularly for the tenants.

“Increasing competition in the market mean more investors get a bite of the pie and tenants are less likely to be hit by soaring rentals. It’s the old supply versus demand scenario.

“Property is an attractive investment, as the saying goes there is nothing as safe as houses. And, despite the significant downturn there has been since the boom years, those looking upon property as a long-term investment can still, and will have, make a strong return.

“The nature of property market has changed, it must now be viewed as a long-term investment rather than a quick turnaround but investors are responding and succeeding in this changed marketplace.”

Property-focussed investment funds have been reporting strong yields and positive returns, while the private investor, hit by reduced pension pots and attracted by low-interest rates, are being drawn back towards the buy-to-let market.


Not sure where to start? Why not just give us a call today on
0131 624 6820 for Edinburgh or 01334 475001 for Fife to discuss your needs.

All fields marked with * are needed


Want to work with a local, friendly company? Then find your nearest Pagan Osborne office to you below. However, we also work with clients throughout the UK so you can call any of our numbers and our helpful reception staff will be happy to forward on your call to the most appropriate expert to suit your needs.

Clarendon House
116 George Street
EH2 4LH Call Us
Tel: 0131 624 6820
Fax: 0131 220 1612
2 Comiston Road
EH10 5QE Call Us
Tel: 0131 539 3333
Fax: 0131 538 7204
St Andrews
106 South Street
St Andrews
KY16 9QD Call Us
Tel: 01334 475001
Fax: 01334 476322
12 St Catherine Street
KY15 4HH Call Us
Tel: 01334 653777
Fax: 01334 655063
1 Crossgate
KY15 5HA Call Us
Tel: 01334 656525
Fax: 01334 654119
Pagan Osborne
5a Shore Street
KY10 3EA Call Us
Tel: 01333 310703
Fax: 01333 311918


Got a question? Fill in your details below and we'll give you
a call back on the date and time you have chosen.