Property of the Month – March 2019
|Type of homes||New apartments|
|No. of homes||8|
|Built||2013. Two developments of apartments by Miller Homes|
|Gross rental yield||4.4%|
Why I like the Location?
Edinburgh has the strongest economy and housing market in Scotland, and is officially the UK’s most attractive city, according to a new study commissioned by the Royal Mail. The Scottish capital excelled in measures such as education, business, community, earnings, and job opportunities, as well as green space – which makes up 28 per cent of the city.
The historic city also happens to be start-up central – most likely because office space costs half of what it costs in London.
Of the honour, Edinburgh council leader, Adam McVey, said: “It is welcome news that Edinburgh is yet again receiving recognition as the UK’s top city to live and work in. The facts demonstrating the city’s attributes are plentiful and our own statistics in Edinburgh by Numbers show that Edinburgh is a vibrant capital city with a diverse economy, an increasing population with strong investment potential.”
What I like about the properties?
Miller Homes built two schemes, Varcity South and North, about ¼ of a mile apart and both offer attractive environments, close to employment, leisure facilities the Western General Hospital and Fettes College.
How has it gone so far?
We acquired the properties some six years ago, having negotiated an bulk discount of 15% which gave a positive one off impact to the overall returns for fund investors. Since then, capital values of our properties have grown strongly in line with the rest of Edinburgh, underlying our overall investment philosophy that a portfolio of residential properties across the UK brings diversification benefits to investors.
Furthermore, as the properties have let well, they generated stable income from rents. Rental growth is continuing and one unit which has just become vacant is being marketed at a level above all existing lettings.
Rents have also risen, although more slowly at between 17% and 26%. Rental growth is continuing and one unit which has just become vacant is being marketed at a level above all existing lettings.