The growth of property investors taking out landlord insurance and buy-to-let mortgages in a rural part of Scotland is at record highs, as the financial downturn shows no sign of picking up.
With experts in the Angus region of Scotland estimating it can take up to 15 years for prospective home owners to save up for a deposit on a house there is little surprise that the local rental market is booming, as tenants look for decent affordable accommodation. Local professional landlords are being joined in the sector by home owners who can no longer afford to live in the home they have mortgaged. They are also been joined by young and middle aged professional business people looking for a secure investment that will eventually realise a pension. It is this third type of landlord that appears to be in the majority as they bravely take a chance on utilising the equity they have in their current property to create a nest egg, and forge a secure future for themselves and their families.
Amanda Wiewiorka, who works for Wardhaugh Property Management Services in Forfar, said: “Anyone thinking of getting into buy-to-let, and the number is growing by the day as house prices fall, should take a five to ten year view, not look at this as a short-term plan. More landlords in Angus are buying up three to four bedroom homes which are popular with the growing number of families that are renting. This is a whole new market for buy-to-let and is particularly short on supply.”
The situation in Angus, which has around 5,500 properties privately rented out by 4,000 landlords, is mirrored across most of Scotland with industry insiders estimating there are approximately 1.2 million home owners collecting rents from tenants ensconced in one of their properties.