Property investment opportunities in Edinburgh: Springwell House

Property investment opportunities in Edinburgh: Springwell House
2
May

There are exciting property investment opportunities in Edinburgh as Gorgie’s historic Springwell House is set to become a contemporary residential complex, in an area which has seen significant increases in rental and housing prices in recent years.

Springwell House

Springwell House sits in established walled grounds at the junction of Gorgie Road and Ardmillan Terrace. Award-winning AMA Homes started work in February this year to transform the former hospital, with the development due for completion in autumn / winter 2020.

The redevelopment will retain the two original, late 1800s Victorian buildings, restoring and converting them. The 1960s extensions will be demolished and replaced by new-build contemporary designed additions which will complement the existing historic, characterful buildings. The well-established walled grounds will be landscaped, and in total the finished Springwell House complex will create 48 new homes. These will offer a range of options, from one to four bedrooms:

  • 35 spacious apartments
  • Five contemporary duplexes
  • Six four-bedroom townhouses
  • Two traditional lodges

Gorgie – an excellent area for property investment opportunities in Edinburgh

Gorgie is a vibrant area, with a strong sense of place. It’s a popular location to the west of Edinburgh, with excellent transport links. Close to Haymarket Station and to the city centre, Gorgie also offers easy access to the Gyle, Edinburgh Airport and the motorway network. There’s a thriving local community, with appealing local shopping and entertainment opportunities.

This winning combination makes the area a desirable residential location, perfect for property investment opportunities in Edinburgh.

Edinburgh – a confident investment for short term and long term gain

The private rental sector in Scotland continues to grow, demonstrated by the most recent Buy to Let Britain Report, which notes a significant 11.9% increase in value year on year, and average rental yields of 5.3%. This compares to a UK average yield of 4.4%.

Edinburgh’s private rental sector is thriving

Edinburgh is the driver behind much of the growth recorded in Scotland, as confirmed by Citylets industry reports – the city has experienced annual rental growth for each consecutive quarter for over eight years, and Q4 2018 saw a significant 7.8% increase. With a growing population, there is continued strong demand for good value properties of all types.

EH11: a sound investment

Springwell House sits within the EH11 postcode, currently one of the best-performing areas for property investment opportunities in Edinburgh.

PropertyData, providers of residential property market data and analytics, lists EH11 as returning Edinburgh’s second-highest average rental yields, at 6.9%. This is a substantial 26% increase on five years ago. Within Edinburgh, these yields are second only to the EH8 postcode area, at 7.2%.*

EH11 ranked second in TotallyMoney’s Q4 2018 top ten buy-to-let areas in Scotland; another four Edinburgh postcodes also made the list:

Rank Postcode Area Properties for rent Average monthly rental value Properties for sale Average asking price Yield
1 AB11 Aberdeen 243 £660 68 £116,110 6.82%
2 EH11 Edinburgh 51 £1,009 58 £182,399 6.64%
3 G20 Glasgow 30 £810 79 £146,841 6.62%
4 G12 Glasgow 62 £1,112 56 £208,838 6.39%
5 AB24 Aberdeen 322 £689 96 £131,134 6.31%
6 EH6 Edinburgh 73 £1,060 125 £204,295 6.23%
7 EH3 Edinburgh 138 £1,923 75 £373,044 6.19%
8 EH7 Edinburgh 80 £1,197 112 £238,446 6.02%
9 EH8 Edinburgh 33 £1,245 45 £249,304 5.99%
10 G3 Glasgow 39 £1,001 60 £202,303 5.94%

Q4 2018 Best buy-to-let areas in Scotland - http://www.totallymoney.com/buy-to-let-yield-map/

Capital growth with increasing house price trends

The ESPC’s House Price Report March 2019 shows an increase in Edinburgh’s average selling prices by 2.1% on January – March last year. This continues an increasing trend; March 2018 saw a 7.2% increase on the same period in 2017; March 2017 saw an 11.6% increase from March 2016.

Gorgie, Dalry, Slateford and Chesser have also seen an increase in average selling prices for one-bed flats, which are up 2.1% on the same period last year. These areas are also amongst those achieving both the shortest selling time and the highest average percentage of Home Report valuation.

Springwell House Phase 1 properties available for purchase ‘off plan’

The first property investment opportunities in Edinburgh’s Springwell House will be apartments in one of the two impressive Victorian buildings. This first phase of the development is due for completion and occupation in May 2020. The first 10 properties will consist of spacious one-bed and two-bed apartments, and AMA Homes have recently released prices – these range from £258,000 to £340,000.

These properties are now available for purchase ‘off plan’. The site can be viewed by appointment – contact Behnam Afshar on 07967 322 025 or [email protected].

Property investment opportunities in Edinburgh -Springwell House - Junction View - (c) AMA Homes

CGI view of AMA Homes’ Springwell House residential redevelopment

Springwell House – At Home In Edinburgh’s view

The Springwell House development offers exciting property investment opportunities in Edinburgh. We’re confident that the redevelopment and construction will be to a high standard; AMA Homes is a hands-on family business, like ourselves. They follow an innovative, sustainable and sympathetic approach to redevelopment, ensuring quality, low maintenance and future-proof homes – as demonstrated by their many award-winning developments. In addition, we’re pleased to see one of Edinburgh’s historic buildings brought back into use.

Edinburgh’s private rental sector continues to outperform both the Scottish and UK markets, with buy to let properties in EH11 providing a strong return on investment. Gorgie offers a high average rental yield, however given the market value of the Springwell House properties, it’s unlikely that the achievable rental yields (while reasonable) would match this – if you’re looking for short term gain then Springwell House might not be for you. If, however, you’re looking for long term property investment opportunities in Edinburgh then we believe Springwell House has a lot to offer.

Edinburgh’s residential property market is strong, with Gorgie performing well against this; Springwell House properties will be of a high standard – in terms of both construction and design – and will offer steady increasing capital growth over the long term. The good build quality should also mean less spend on repairs and maintenance in the short term. In addition, landlords would expect to attract a higher quality of tenant to these high-end properties.

Springwell House is an ideal location for long term property investment opportunities in Edinburgh, for both first-time landlords and those looking to grow their portfolio.

Next steps

If you’d like further information about property investment opportunities in Edinburgh’s Springwell House or to arrange a site viewing, get in touch with Behnam Afshar, AMA Homes:

Free buy-to-let assessment

If you’d like further, detailed information about the buy-to-let potential of a Springwell House property, or any other property investment opportunities in Edinburgh please get in touch with our team.

We offer a free, no obligation, buy-to-let assessment service – this considers the potential for long term lets on a private residential tenancy, (and short term lets on a holiday let contract, where appropriate). The assessment looks at the property’s target market, average rental prices based on similar properties in the same EH postcode over the last 12 months and the estimated monthly rental price, as well as looking at any particular property and location pros and cons. Our clear and concise analysis means you can make a confident decision regarding property investment opportunities in Edinburgh.

At Home In Edinburgh

We are Edinburgh’s friendliest and most efficient letting agency, and we’re proud that most of our landlords come through recommendations – in fact, 100% of our landlords would recommend us. We care about our property owners, and our honest, approachable service complements our professional service.

We offer both full management and let-only services; you can find out more about them in our short Landlord Guides, or get in touch with us for a chat:

 

* Data correct as of 25.04.19