The planned opening of the V&A in 2015 is already having an impact on Dundee’s buy-to-let property market, it has been claimed.
Business in buy-to-let flats is booming, with both large property agents and individual landlords looking to invest in the city’s rented accommodation.
Lindsay Darroch, head of property at Blackadders Solicitors, said property investment in Dundee is heading for a big year and already there has been a noticeable increase in inquiries relating to buying flats for letting.
He said that one of the reasons is the opening of the V&A which “will have a big impact on the local economy and the housing market”.
Mr Darroch said his own experience mirrors that of recent reports that show buy-to-let lending increased by more than 10% last year, and that landlords are achieving average yields of more than 6% from their properties.
He said: “A number of years ago Dundee was described as the buy-to-let capital of Western Europe. I am certainly noticing an increase in activity from buy-to-let investors and, although I had anticipated this increase happening earlier, I am now receiving a number of inquiries in relation to property investment.
“This demand is across the whole spectrum, from large property funds to individuals who are looking to buy one or two properties either to supplement income or as a long-term investment.
“I think high tenant demand is caused by a local population that is willing to rent, a strong and ever-growing student population allied to a lack of funding for first-time buyers.
“Good yields are property type and area dependent ie a flat in Broughty Ferry could yield 4% to 5% but there are some deals going through at 12% to 15%.
“Finally, the opening of the V&A in 2015 will have a big impact on the local economy and the housing market.
“I think the future is very bright for property investment especially in Dundee and 2013 is the year that this is really going to begin.”