- Braemore reports 40% growth in interest from landlords, suggesting ‘business as usual’
- City expected to survive Brexit with limited long-term impact
- Investors continue to see positive financial benefits
Braemore, Edinburgh’s leading letting agent, has reported a significant rise in interest from landlords in the weeks following Brexit, suggesting the local market is confident despite growing political and economic uncertainty.
Braemore has confirmed that 40% more landlords have signed up to its letting and property management services compared to the same period last year.
As average rental return and capital gain* continues to grow in response to rising demand, the city’s property market remains an attractive investment opportunity.
Last year Edinburgh landlords benefited from an average 6.8% rise in rental return, and 20.5% in the last three years.
Braemore Chief Executive, Ian Lawson said: “Confidence in Edinburgh’s property market remains high and for us it’s very much business as usual despite concerns around the Leave vote.
“As demand continues to significantly outstrip supply, we can only expect this to endure for the long term and contribute to an increase in landlord investment return, showing at present between 6-8% on properties valued at £125,000. With attractive rates also being shown on the higher end of the market, Edinburgh PRS continues to be a sound investment.
“Despite growing uncertainty following Brexit, buy-to-let mortgages are still being offered by lenders at a very reasonable rate and as the majority of buyers in Scotland reside here, the market remains insular and is not hugely influenced by overseas investors.”
Braemore was acquired by property group Lomond Capital in 2010 and has subsequently added to its Edinburgh sales and lettings operation through the acquisition of Alba, James Gibb Lettings, Charles White Lettings, Woodstar, The Letting Service and Steyn Lettings. Braemore manages over 2,500 properties for landlords and investors.
*Recent findings from the UK House Price Index (Office of National Statistics) show growth in average sales prices for Edinburgh properties with the annual % uplift in Edinburgh recorded in May 2016 at 5.24%.