Glasgow Rental Returns Quickest in UK for Buy to Let Property Investment

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Glasgow rental returns have been found to be the best the UK for returning buy to let property investors original outlay.

With Glasgow rental returns averaging £10,140 per annum, the original average property cost of £129,764, plus property tax of £5,190, giving a combined total of £134,954 was recouped in just 13.3 years.

The next best city in the UK for returning property investment quickly was Belfast, which took 15.8 years on average, with another Scottish city, Aberdeen, taking third place at an average of 17.8 years.

The report, carried out by letting agent Benham and Reeves, looked at the average house price plus the cost of buy to let stamp duty and annual rent, and ranked each area on the number of years it would take for this annual rent to recoup the cost of buying in each area and paying taxes such as land and Buildings Transaction Tax in Scotland and Stamp Duty south of the border.

With Glasgow rental returns coming top and Aberdeen in third place, it is hardly surprising that when it comes to countries as a whole, Scotland offers the quickest return on property investment with the annual rent returning the original asking price in 17.7 years. This despite Edinburgh taking average 21.6 years to recoup the cost of the average property price of £263,868.

Northern Ireland was the second quickest country to return the full initial investment through rental at 18.9 years, followed by England at 25 years and finally Wales at 26.4 years.

Nottingham was the quickest area in England to see rental income recoup the initial costs of buying a property at 18.4 years, followed by Newcastle at 18.5 years.  

Director of Benham and Reeves, Marc von Grundherr, said: ‘Buy to let investment is a complicated business, even more so given the changes to the sector of late, however, the primary indicator of a good investment is always going to be the rental yield available.’

With relatively low initial purchase costs, good Glasgow rental returns could amount to good financial sense for aspiring buy to let property investors wherever they are based in the UK.