Buy-to-let yields down in Scotland

According to buy-to-let broker, Landlord Mortgages, rental yields in Scotland have fallen from an average 6.5% at the start of the year to just under 6%.

Scotland, however is still outperforming England where yields dropped from 6% to 5.5%. Landlord Mortgages, says the fall on return for buy-to-let in Scotland is a result of average house prices increasing, meaning investors have to pay more to secure a property. The lower house prices in Scotland have generally made it a more lucrative market for investors but it is now moving into line with the rest of the UK.

However, a report by the Edinburgh Solicitors Property Centre showed that the market for people with buy-to-let mortgages in Edinburgh demonstrated significant growth during the last year. The average house price in Edinburgh has reached £199,615, a 13% increase over the last 12 months.