Montrose prices make it buy-to-let hotspot

News Category: Industry News

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Montrose recorded the biggest house price increase in 2007, making it a particularly attractive location for those looking to invest in rental accommodation.

New figures published by the Halifax indicated a 39 per cent rise in property prices in the Scottish town, with 13 of the 20 towns seeing the largest house price rises being located in either Scotland or the south east.

With rising house prices leading to increased rental demand, the revelation that 48 per cent of UK towns now have an average house price in excess of £200,000 should further boost the market for residential lettings.

There are now no towns in Britain with an average price below £100,000. Nearly half of all towns have an average value above £200,000," said Martin Ellis, chief economist at Halifax Estate Agents.

"Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices," he added.

Figures published earlier this week by lender Paragon revealed that the average total returns for a buy-to-let property in 2007 were 21 per cent, their highest level for more than two years.

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