Inaugural Braemore Index reveals landlord confidence ...

Landlords are confident about the long-term potential of Edinburgh’s property market as an investment choice, according to the first ever Braemore Index.

The index, designed to reflect the mood of over 450 landlords across a range of measures, documented a confidence level of 72.1. Most investors (84%) said they see their rental properties as long term investments.

Currently, the rental market in Edinburgh is thriving, with the majority (83%) confident in the rental potential of their property over the coming year. Such confidence only drops slightly when looking at the next 3-5 years (78%) and over 10 years (75%). Only 13% of investors have experienced some anxiety over the short term prospects of the Scottish capital’s property market, whilst 73% of investors agree that property is always a safe investment in the long-term.

The independent research, conducted in early November, quizzed landlords with properties in Edinburgh. Of the 450 people who responded, just 30% lived in Edinburgh and only 1% identified themselves as full time property developers. 65% of landlords owned only one or two properties, whilst the age range of landlords was evenly spread from 35 to over 65 and between male and female.

Significantly, the vast majority of those who gave a reason for becoming a landlord specified that it was a proactive decision (77%). Only 12% claimed to be ‘reluctant’ landlords pushed into letting because they were unable to sell their property.

“The Braemore Index is a fascinating reflection on the private rented sector as the data collected represented a large spread in terms of gender, age, working status and property ownership,” Malcom Cannon, CEO of Braemore, said.

“The reasons for becoming a landlord were hugely varied but the common thread was an acceptance of property as a long-term investment, even when the levels of confidence in the costs associated with letting a property were relatively low.”

He added: “The Index has also revealed that property investment is for everyone and that there is no stereotypical landlord. With so many properties owned by people outside the city, Edinburgh itself is clearly seen as a safe place to invest.”

The research, carried out by Why Research, will be carried out on a six monthly basis.