Scotland the place to buy to let says study

Scotland is the best buy to let location in the UK based on the speed at which landlords can recoup their investment on both property price and stamp duty costs, based solely on annual rental return.

The research from estate and lettings agent Benham and Reeves shows it takes 17.7 years to do so in Scotland and the country also has the city with the quickest period, taking 13.3 years in Glasgow.

Northern Ireland was the second quickest country in the UK at 18.9 years, followed by England at 25 years and then Wales at 26.4 years. After Glasgow the best city location is Belfast at 15.8 years and then Aberdeen at 17.8 years.

When it comes to London, the borough of Tower Hamlets is the best buy to let location for landlords with annual rental income taking 21.4 years to return the average house price and stamp duty costs of £452,821.

Next was Barking and Dagenham at 22 years, Newham at 23 years, Greenwich at 23.5 years and Enfield at 25.7 years.

Nottingham was the quickest area in England to see rental income recoup the cost of buying a property at 18.4 years, followed by Newcastle at 18.5 years.

‘Buy to let investment is a complicated business, even more so given the changes to the sector of late, however, the primary indicator of a good investment is always going to be the rental yield available,’ said Marc von Grundherr, director of Benham and Reeves.

‘While a buy to let investment includes all sorts of additional concerns such as contingency budgets, capital growth and so on, we wanted to highlight on a more digestible level where offers a good investment option when it comes to recouping the cost of that investment via your rental income,’ he explained.

‘What this research demonstrates is that while buy to let remains a lucrative business despite the Government’s attempts, it should be viewed as a long-term one and not a method for making a quick buck. For those serious about the sector whether it be as a professional or amateur landlord, it’s important to understand the commitment before diving in if you wish to see a profit,’ he added.