Scotland costal areas very profitable for investors

Property buyers looking for strong returns should invest in Scottish coastal areas, analysis from Pikl Insurance has found.

Buying in Portree on the Isle of Skye costs an average of £206,200 while investors can make £52,400 annually – meaning their investment could be recouped in less than four years. The area is a magnet for tourists thanks to its dramatic scenery, colourful harbour, and proximity to the Trotternish Ridge.

It’s a similar case in Tobermory, where you can invest for £178,000, receiving annual revenue of £35,700. This is the main town on the Isle of Mull known for its brightly painted houses and relaxed atmosphere. The island is a haven for outdoor enthusiasts with walking, cycling, sailing, and kayaking all on offer.

After that comes the very reasonably priced Rothesay on the Isle of Bute, where you can land a home for an average of £109,800 against projected annual revenue of £21,900. The island has a rich history and boasts stunning scenery, with rolling hills, sandy beaches and dramatic cliffs.

Cliff Ward, a holiday-let expert at Pikl, said: “Staycations have become increasingly popular since the pandemic. Owing to this reason alone, many people are looking for second homes that they can enjoy themselves and rent out to holidaymakers for the rest of the year as an additional source of income.

“Coastal locations also tend to have beautiful scenery, good weather, and plenty of amenities, making them desirable places to live permanently too.

“Whilst investors should consider their own budget, risk tolerance, and investment goals before making a decision, it’s safe to say that the coastal locations in our top 10 list offer fantastic investment opportunities with strong price to income ratios.”

Outside of Scotland the best place to invest is Nefyn, a small village on the north coast of the Lleyn Peninsula in Wales. It has an average house price of £241,500 against a high annual revenue of £48,000. It’s known for its beautiful beach and excellent water sports facilities. The village is surrounded by some of the most dramatic scenery in Wales, making it a popular choice for walkers and hikers.

In England the best place to invest is fishing village Robin Hood’s Bay in North Yorkshire. This has a pricier average house price of £350,500 but against a healthy a gross annual revenue of £51,400. With its narrow cobbled streets, red-roofed cottages and sheltered beach, the village is a popular destination for tourists. The surrounding area is also home to the North York Moors National Park, offering stunning scenery and opportunities for outdoor activities.