Tuesday, 6 September 2016
The Scottish buy-to-let market has remained strong throughout 2016 and continues to offer competitive investment yields for landlords, reports Scotland’s leading property consultancy, CKD Galbraith.
[Pictured: Bob Cherry, partner at CKD Galbraith.]
The firm has experienced sustained demand for good quality investment properties despite the raft of legislative changes within the lettings sector, with particular interest received from the 55-plus demographic with pension lump sums at their disposal.
In April this year the 3% levy on second homes came into force and next year will see the introduction of the Private Tenancies Act replacing the current letting system in Scotland. Many expected such changes and Brexit uncertainty would negatively impact the lettings market and deter those considering investing in buy-to-let properties. However, CKD Galbraith believes the lettings market remains resilient with both property supply and demand remaining steady.
The firm’s experience mirrors the findings of a recent report published by BM Solutions, the buy-to-let brand of Lloyds Banking Group which indicated rental yields have remained strong with Scotland showing an average of 6.3 per cent.
Bob Cherry, partner at CKD Galbraith, commented: “The lettings market in Scotland still represents a sound investment opportunity for those looking to put their savings into bricks and mortar. As always, the vagaries of the buy-to-let market are subject to regional trends but overall demand remains especially strong from those who have reached or are approaching retirement age.
“Recent changes to pension schemes has resulted in many people choosing to withdraw savings as a lump sum and invest the money into a market that offers attractive yields. With the Bank of England base rate having been cut to 0.25%, suitable buy-to-let properties offering an average yield of around five to seven per cent are often preferable to savings accounts and ISAs which might not offer such good interest rates.
“Property is still viewed as one of the most popular and safest forms of investment for large sums of money, and with the right advice, can offer landlords a very appealing and long-term investment option given the continued shortage of good quality housing supply.”
CKD Galbraith is currently handling the sale of 18 Wood Court Troon (pictured above), now under offer, a 2-bedroom apartment which will provide a buy-to-let landlord purchaser with a 5.3% gross yield per year.
Rural properties in particular remain in high demand from tenants, with two to four bedroom rural cottages averaging anywhere from £500 to £900 per month. With higher capital values for attractive cottages, the return on capital is often not as good as on apartments in town but still beats many alternative investments.
For example, CKD Galbraith’s Ayr office sold East Browncastle Bungalow (pictured above) for £181,000, having previously let it for £825 per month, a gross yield of 5.4%.
7 Killoch Place
Ayr KA7 2EA
Contact: R A Cherry BSc MRICS
Tel: 01292 268181
Fax: 01292 292300
About CKD Galbraith
CKD Galbraith is an independent property consultancy employing 225 staff in offices across Scotland including Edinburgh, Stirling, Perthshire, Cupar, Inverness, Castle Douglas, Ayr, Elgin, Galashiels, Kelso, and Aberdeen, offering local knowledge, national expertise and enjoying international reach.
The firm is Scotland’s largest and leading rural consultancy managing and providing advice on farm, forestry, land and estate interests on over three million acres. CKD Galbraith provides the full range of property consulting services across the residential, commercial, rural and renewable energy sectors throughout Scotland and northern England. The partnership also enjoys a successful relationship with its associate firm, CKD Kennedy Macpherson.
CKD Galbraith’s Ayr Office is a Founder Member of the Elite Ayrshire Business Circle.
Monday, 5 September 2016
By: Ian Ferguson
TENSION is building ahead of the 2016 William Hill Ayr Gold Cup Festival at Ayr Racecourse next week, at which more than £680,000 in prize money will be up for grabs.
[Don't Touch trained by Richard Fahey
wins the 2015 William Hill Ayr Gold Cup.]
wins the 2015 William Hill Ayr Gold Cup.]
For the first time ever there is a Class 1 race on each of the three days, with the William Hill Doonside Cup, a Listed Race, moving from the Saturday to Thursday with some high quality horses competing for the £65,000 prize fund.
The highlights on Friday include the £50,000 Shadwell Stud/EBF Stallions Harry Rosebery Stakes over six furlongs and the William Hill Ayr Bronze Cup, also over six furlongs.
Scotland’s only Group race, the Group 3 William Hill Firth Of Clyde Stakes, another six furlong sprint, is run on Saturday alongside the William Hill Ayr Gold and Silver Cups.
This year’s Gold Cup is shaping up well with the Richard Fahey trained Growl, the 7-1 ante post favourite with sponsors William Hill. Fahey won the race last year with Don’t Touch and will be keen to land the spoils again, while there has been a significant move for Magnus Maximus who won the Listed Garrowby Stakes at York on Sunday.
Other likely contenders include the David Nicholls trained pair Orion’s Bow and Kimberella, Bryan Smart’s Nameitwhatyoulike and Jim Goldie’s Jack Dexter.
The action begins on Thursday 15 September with the first race at 2.00pm. For more information or to book online call 01292 264179 or go online at www.ayr-racecourse.co.uk
For further information please contact Iain Ferguson on 01292 294972 or 07795 565691.
Ayr Racecourse and the associated Western House Hotel are Founder Members of the Elite Ayrshire Business Circle.