What challenges face buy-to-let investors in Scotland?

NEPI take a look at what challenges face buy-to-let investors in Scotland? There are a number of issues that Scotland's buy-to-let market is currently facing. Here are a few:

1.  Changes to landlord tax relief

The Scottish government has introduced changes to the way landlords can claim tax relief on their rental properties. This has made it more expensive for landlords to operate in the Scottish market, which could lead some to sell their properties or reduce their investment in the market. Read about it here.

2.  Increasing regulation

The Scottish government has introduced a number of regulations for landlords in recent years, including the Scottish Private Residential Tenancy (SPRT) and the requirement for all landlords to be registered with the Scottish Landlord Registration Scheme. These regulations can be time-consuming and costly to comply with.

3.  Changes to rent controls

The Scottish government has also introduced changes to the way rents can be increased in the private rental sector.  Landlords are now required to provide tenants with six months' notice of any rent increases, and the increases are capped at the rate of inflation. This could make it more difficult for landlords to maintain their income from rental properties.

4.  Affordability

Scotland has seen a significant increase in house prices in recent years, which has made it more difficult for some people to afford to buy a home. This could lead to increased demand for rental properties, which could be good news for landlords, but could also lead to increased competition for properties.

It's worth noting that the buy-to-let market can be affected by a range of economic and political factors.  It is important for investors to do their own research and due diligence before making any investment decisions.

What is the alternative to Scotland's buy to let market?

The challenges that face buy-to-let investors in Scotland can be overcome. There are several reasons why the North East of England could be a good place for Scottish property investors to consider investing. Here are a few potential reasons:

1.  Affordability

Investors looking to get a good return on their investment may find the North East of England an attractive option because property prices in the area tend to be lower compared to other parts of the UK.

2.  Strong rental demand

The North East of England has a strong rental market, with many people looking for properties to rent. This could make it an appealing option for investors looking to generate a steady stream of income from their property.

3.  Good transport links

The North East of England is well-connected to other parts of the UK, with good transport links by road, rail, and air. This could make it easier for investors to manage their property portfolio, as well as making it more appealing to potential tenants.

4.  Potential for capital growth

While it's impossible to predict the future with certainty, the North East of England has shown strong potential for capital growth in recent years. This could make it a good option for investors looking to build wealth through property.

It's worth noting that investing in property carries risks, and it's important to get the right advice and help from trusted professionals.

North East Property Investment (NEPI)

NEPI has sourced over £10million worth of property over the last 18 months, here are some examples of areas that might be worth you considering:

1.  Newcastle

Newcastle is the largest city in the North East of England and is known for its strong economy and vibrant culture. The city has a strong rental market therefore it has a high demand from both students and professionals.

2.  Sunderland

Sunderland is a large town in the North East of England with a strong economy and good transport links. It has a growing student population, therefore a strong rental market.

3.  Gateshead

Gateshead is a town in the North East of England located just outside Newcastle. It has a strong economy and good transport links, making it a popular location for both professionals and students.

4.  Durham

Durham is a historic city in the North East of England known for its beautiful architecture and rich history. It has a strong rental market, with high demand from students and professionals.

We have sourced property in all these areas. For a full list of available properties click here.  Or contact us today to find out more and let us create a bespoke investment plan for you.  NEPI have been assisting individuals and businesses, from first-time landlords to overseas investment funds, to build and dispose of property investment portfolios for over 15 years.  Because of this we believe our expertise in this field is unparalleled.