April 20, 2021
With its own distinct identity – including stunning views, world-famous golf courses, and historical importance – the Kingdom of Fife has a lot to offer both residents and visitors.
But what’s on offer in terms of Fife buy-to-let property investment? Where should you, the savvy property investor, look for the best deals? If you’re looking for pointers, you’ve definitely come to the right place.
Fife barely covers 50 miles at its widest point but seems to encompass almost every property investment market out there – so, between the semi-industrial south and the rural north, you could almost say it has something for everyone.
With a population of 371,910, this makes it an interesting area to discuss as I review some of the most interesting and promising areas in Fife to invest – from Methil to St Andrews!
NOTE: This is part 5 in a series of overview guides, covering Scottish cities and areas to invest in. You can check out our overview of Glasgow here, and, of course, Edinburgh here. We’ve also recently reviewed Dundee, and our last blog covered Aberdeen!
Property values
Fife is home to a myriad of different areas and it’s fair to say that some are more fashionable than others, so the average property value is not a high one.
However, just for your information, until recently, Fife also boasted the most expensive street in Scotland – Golf Street in St Andrews, later gazumped by Regent Terrace in Edinburgh).
St Andrews, although more expensive, is always a popular choice, with new-build developments underway and classic stone tenement property in the town cerntre.
At the time of writing, the average property price in East Fife, West Fife and Kinross was £218,393; up an impressive 11.9% from last year (according to ESPC’s report detailing stats from December 2020 to February 2021,).
Compared to, over the same time period, the average price in Edinburgh, the Lothians, Fife and the Borders over the past three months is £265,973 – an increase of up 7.4%.
Variety
As I mentioned, Fife is one of the most diverse areas in Scotland. Personally, due to it’s super strong property investment fundamentals, I get a good feeling about property investment here.
You’ll find the commuter market into Dundee and into Edinburgh, student market in St Andrews, the short-term let market in the East Neuk, and plenty of private residential and council tenancies scattered throughout – a regular old property pick n’ mix, if you will!
As for types of properties, there are traditional cottage style four-in-a-block type houses, terraced houses with gardens, and lots of development happening in busy areas such as Dunfermline (Duloch Park gets a special mention).
Other areas of interest include the new Guardbridge Eden campus, and the north of Fife towards Dundee; as the city itself has had a boost, other areas around it will also have benefitted, with plenty of people looking to commute.
Yields
Just like you’ll find a wide variety of properties in Fife, you’ll also find a wide variety of yields, ranging from St Andrews yields of 5.5% all the way up to potentially 10% or 11% in areas such as Kelty, Methil, Rosyth, Cowdenbeath, Kirkcaldy and Inverkeithing.
Many investors aim for a good balance between achieving maximum rental yield, long-term tenancies and some solid capital growth (value).
If maximum capital appreciation is what you’re looking for, you will find it’s usually linked to higher value property, and therefore, in areas such as St Andrews or East Neuk.
Jobs
The employment levels in a particular location is something to consider when assessing whether to invest in that area or not, as many investors feel that high levels of employment provide a rich seam of good tenants.
And Fife, once known for coal mining and heavy engineering, nowadays generates around £12 billion to the Scottish economy, while providing 163,000 jobs.
It has a strong manufacturing industry employing 15% of those working in local businesses in 2018 and, while heavy engineering still plays its part, new high tech industries are starting to take over in what’s known as Fife’s ‘silicon glen’.
Other prominent industries include construction, financial services (employing 19,000 people in the finance sector), and green industries such as wave and wind power.
Tourism and hospitality also feature in Fife’s economy, especially in the particularly scenic coastal areas and golfing scene.
Fife Council, NHS and Fife College are also worth a mention as noteworthy employers.
Finally, it’s worth mentioning that many workers in Fife also commute to the bigger cities of Edinburgh, Dundee and even further afield to Glasgow, enjoying the best of both worlds.
Amenities
The level of amenities available in an area is often linked to levels of employment and certainly it’s a factor in maintaining a strong performance in property values.
With its rich history, Fife has plenty of galleries, museums and attractions, from St Andrews museum, to St Mary’s Cave in Dunfermline.
There are plenty of places to shop, including shopping malls, high streets and touristy hot spots. There’s also some incredible places to dine, from Michelin-starred restaurants to award-winning fish and chips!
Transport
When picking up a buy-to-let, it’s smart to consider the property’s access, and therefore your tenant’s access, to transport links.
There are plenty of ways to get around in the Kingdom of Fife, with public transport linking up the main towns of St Andrews, Dunfermline, Kirkcaldy, Glenrothes, Cupar and Leven – and you can just as easily travel through to the nearby cities of Edinburgh, Dundee, Perth or Glasgow.
Stagecoach provides local bus services, whereas Scotrail operates a train service providing several mainline routes, including the Fife Circle line, which takes roughly 35 minutes to get you from Dunfermline Town into Edinburgh.
TIP: An interesting and noteworthy development is Levenmouth rail link; a planned scheme aiming to reopen five miles of railway line in Fife, and connecting the town of Leven and other villages with the Fife Circle. It could be one to keep an eye on in terms of nearby investment opportunities!
Universities and colleges
Students have, for almost as far back as anyone can remember, been a great source of rental demand – especially if you are a buy-to-let investor with a tendency towards larger flats i.e. HMO properties.
St Andrews is home to the prestigious University of St Andrews, regarded as the third-oldest university in the English-speaking world. Every year, the University – founded in 1410 – welcomes students from around the world to its historic halls.
With over 10,000 students in any given year, the university’s motto is ‘Ever to Excel’, a well-known phrase taken from a speech in Homer’s Iliad.
There is also the noteworthy Fife College, delivering over 400 courses across 40 specialist areas, and is currently attended by over 22,000 students, from four separate campuses based in Dunfermline, Kirkcaldy, Glenrothes and Levenmouth.
Impressively, you can study for a full degree at Fife College, with flexible opportunities for students who are able to attend university events and lectures, as well as the chance to experience a university culture whilst studying.
For those willing to travel further afield, Fife also has Edinburgh, Dundee or Glasgow universities within reach.
Quality of life
Once deemed the ‘happiest place to live’ in Scotland (2016), Fife can be a bit of a mixed bag (it is such a large area, after all), but does have a lot going for it – including plenty of lovely green space and countryside!
From the birthplace of golf (St Andrews) and the scenic areas of East Neuk, to the pretty bustling towns of Kirkcaldy and Dunfermline with its glen and historical abbey, there’s plenty of diversity.
Just as a side note, Fife is known as a sunny spot in the UK! In fact, St Andrews has one of the longest hours of sunshine recorded in the UK (1560 hours, compared to the UK average of 1493).
Advice from the property pros
If you’re considering Fife buy-to-let property investment, my main advice would be to speak to the local experts who are familiar with the areas and can advise you – especially if Fife isn’t somewhere you’ve spent a lot of time in, either for business or pleasure.
TIP: If Fife is a new investment area for you, or you’re purchasing remotely, we have provided some tips when attending a virtual viewing – there’s some good general advice for anyone unfamiliar with an area, as well as attending a viewing virtually.
Buying a tenanted property can help to remove a lot of the risk involved with property investment, with fully-compliant properties and instant rental income on Day 1 (something we like to call #ThePortolioWay).
PSST! We also published a blog recently covering some of the main things to consider when investing in your next buy-to-let, post lockdown.
If you feel you could benefit from some more specific advice regarding Fife buy-to-let property investment, it would also be a good idea to speak to a specialist estate agent who has experience in the area.
In summary
There you have it – the Kingdom of Fife, otherwise known as a veritable property smorgasbord for savvy investors. If you’re looking for some good buy-to-let opportunities, you’ll find such a diverse market where you’re spoilt for choice.
If you’re looking for a safer way to invest, buying a tenanted property is the way to start receiving rental income straight away – no void periods, refurbishment or compliance work necessary.
If you’d like some advice on Fife buy-to-let property investment, feel free to give us a call or ping us an email – we read and reply to every message we receive.
What’s your experience of Fife buy-to-let property investment? We’d love to hear some of your thoughts in the comments below!
Written by Ross MacDonald, Director of Sales & Co-founder of Portolio
Get in touch on 07388 361 564 or email to [email protected]
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