A recent survey by LSL Property Services reported that average rents in the UK have reached their highest level for 2 years, a statistic which matches my experience of the Dundee and Angus property market.
Mortgage funding for first time buyers continues to be difficult to come by, meanwhile parents are becoming less able to fund deposits of their children’s first property, the result is there are increasing numbers of people who are looking to lease property instead. A number of local property managers have indicated to me that they cannot get enough properties to meet the demand.
Readers of previous blogs will know my feeling that Dundee is a prime area for buy to let property investment and I am of the view that with the correct advice a buy to let investment can provide significant income return as well as the potential for capital appreciation. Whilst funding for buy to let investments, like all types of mortgage, is harder to come by, I was pleased to see a couple of new products coming into the market.
The fact that Dundee is a university city with a high tenant demand and comparatively low entry prices, means that it could once again be poised to reclaim its title of buy to let investment capital.