Scotland’s burgeoning residential property market has made it a magnet for overseas investors, with landlords from Australia topping the list.
A report by SafeDeposits Scotland, a company which protects Scottish tenancy deposits, said it has 528 landlords from down under registered on its books.
The second highest number of overseas property owners are based in America, 358, followed by Ireland (223), the United Arab Emirates (187), France (182) and Spain (161). By far the biggest number of non-Scottish landlords – 7,279, are based in England.
The figures include Scots homeowners who have moved abroad or elsewhere in the UK to work and have decided to retain their property in Scotland to rent out.
Glasgow and Edinburgh have outperformed the rest of the UK over the past year across several indicators including rising property values and purchase times.
While uncertainty over Brexit appears to have negatively affected the performance of markets elsewhere, notably in London and the south-east, Scotland continues to enjoy significant growth.
Glasgow’s combination of relatively low average property prices (£129,764) and high average annual rents (£10,140) makes it particularly attractive to overseas investors.
A report published earlier this year showed that rental properties in the city and its surrounding areas, including Lanarkshire and Argyll, pay for themselves faster than anywhere else in the UK.
It said property investors in the city can recoup their outlay in just 13.3 years, compared with 35 years in central London, which has the longest wait.
In contrast, buyers can expect to recover their investment after 15.8 years in Belfast, 18.5 years in Newcastle-Upon-Tyne, 26.4 years in Plymouth, 28.6 years in Newport and 31.4 years in Cambridge.
Craig Smith, Director of Scottish Property Centre Shawlands, said that while Scottish commercial property has long been popular with overseas investors, the growth in overseas ownership of private residential property is less well known.
“These figures show owners of Scottish property live all over the world. Because of the buoyancy of the market here, residential property has become an attractive proposition for investors both in the UK and abroad.
“Our priority as a letting agent is to ensure that landlords who are, perhaps, unfamiliar with the Scottish system fully comply with all relevant legislation and regulations, particularly in relation to their responsibilities and their tenants’ rights.”
For more information about opportunities to buy or let residential property in the West of Scotland, call your local Scottish Property Centre branch or visit www.scottishproperty.net