Buy To Let Scotland

Have you considered buying a buy to let in Scotland?

Did you know that Scotland is one of the only places left in the United Kingdom where rental income actually covers your mortgage payments? Rent earned on a buy to let in Scotland even covers your other outgoing expenses, leaving you with a surplus of cash at the end of the month!

scotland map

Properties located in the outskirts of Glasgow, Edinburgh, Dundee, and Aberdeen return yields of around 7-8% to investors.

Some of the best areas to target for buy to let in Scotland are:

  • Renfrewshire
  • Fife
  • Ayrshire
  • West Lothian
  • Paisley

These areas have high demand for properties from tenants looking for rental property and from first-time buyers trying to get into the property market. The recent enlargement of the European Union has further fueled demand. A large number of people from Central and Eastern Europe have recently moved to Scotland. As you can imagine, this is great news for the buy–to-let investors as demand for property exceeds supply, fueling the capital growth of investment property in Scotland.

If you're going to buy a buy to let in Scotland, keep away from the new developments in the city centers and major towns, because yields may be as low as 4-5%.

Instead, look for the two- and three-bedroom terrace properties in the areas listed above. These are the most popular properties among first-time buyers, professionals, and couples looking to rent a home.

To give you an example of what's available as a buy to let in Scotland…

In 2006, I bought this two-bedroom terrace property for £65,500 in Glenrothes Fife, Scotland.

investment property in scotland

This is the front of my buy-to-let, two-bedroom, mid-terrace property.

This is the downstairs lounge, with fitted laminate flooring, double glazed windows, and central heating.

This is the brand new kitchen with floor tiles that were fitted by the previous owners.

Check out my cash flow from this property for the whole year. As you can see, I will make £739 each year. I know it may not seem like much, but try finding returns like this anywhere else in the country, especially in 2007.

Rental income per year


Mortgage interest (5.6%
fixed for 3 yrs)

Management @ 12% plus V.A.T

Building Insurance

Repairs say @ 5% of rent

Landlord's yearly gas certificate

Total reductions

Total Profit






£739 per year



Here are some examples of what's available on the market today, in 2007 Paisley Scotland

Paisley Scotland

Property Type Flat
Number of Bedrooms One
Purchase Price £44,850
Deposit 15% £6,728
Monthly Mortgage Payments (5.19% fixed for 3yrs) £164
Anticipated Rent £300 pm
Rental Coverage (Expressed as % mortgage payment - lenders like to see in excess of 125%) 182%
Gross Yield 8%

Lounge area


Bedroom area

Renfrewshire Scotland

Property Type Two Bedroom House
Number of Bedrooms Two
Purchase Price £60,000
Deposit 15% £9,000
Monthly Mortgage Payments (5.19% fixed for 3yrs) £220
Anticipated Rent £400 pm
Rental Coverage (Expressed as % mortgage payment - lenders like to see in excess of 125%) 181%
Gross Yield 8%

Downstairs Lounge

Two-bed Mid Terrace House

New Fitted Kitchen

These are examples of buy to let Scotland properties that is ideal for anyone starting out in the buy-to-let game. You can begin with less than £10,000. Not only that, but we speak the same language as they do in Scotland, mortgages are readily available, and the Scottish property legal system is somewhat similar to that of the UK.

In my opinion, Scotland is an excellent area to invest in, whether you want to build a buy-to-let portfolio or invest for your retirement.

The other place where you can get a good yield on your investment property is in North east of England.

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