March 1, 2023
For Scots especially, it can be easy to dismiss the Forth Valley as either an area of faded industrial might, or a suitable decoration for a tin of shortbread.
That view does the area a real disservice and could mean missing out on some exciting buy-to-let investment opportunities. It’s an area which should interest property investors but is less covered in guides to the sector in Scotland.
As property pros, we’re going to take a closer look at the area and its principal towns and show you where to look for some real inspiration to improve your buy-to-let adventure.
The not-so-big three
The Forth Valley is a part of the broader Central Belt in Scotland, comprising an area loosely bounded by the towns of Falkirk, Alloa and Stirling. It nestles below the Scottish highlands and is an area steeped in history. Braveheart anyone?
The Forth Valley doesn’t feature a major population centre like Edinburgh or Glasgow, but it has a plethora of villages and small towns, two larger towns in Falkirk and Alloa, and one city, albeit a small one, in Stirling.
These are the administrative centres of their respective council areas, Stirlingshire, Falkirk and Clackmannanshire.
Stirling
Dominated by its ancient and beautiful castle, Stirling is a mix of very old and new. It is often referred to as the ‘Gateway to the HIghlands’, although Inverness begs to differ!
Stirling epitomises the potential for property investment in the Forth Valley, with its proximity to Glasgow and Edinburgh, and the presence of some 12,500 students, many seeking accommodation.
Road and rail links to major population centres are well established. The local economy includes financial services, retail and tourism, and Stirling Council and the University of Stirling are major local employers.
Additionally a number of businesses, including life science companies, have grown up around the university over the years.
Although a campus university, the University of Stirling has on-site accommodation for only around 2,800 students, leaving the remainder reliant on the private rented sector.
According to Home.co.uk, average monthly rents in Stirling range from £554 for a one-bedroom property, up to £2,500 for a five-bedroom. Three-bedroom properties attract an average rent of £1,350 per calendar month.
Property prices have been rising since 2020, with the current average price in Stirling being £212,551 according to Rightmove. Along with the rest of the Forth Valley, Stirling has seen higher-than-average increases in property values.
Falkirk
Although Falkirk lacks Stirling’s glamour, their populations are similar. Sitting athwart the Edinburgh to Glasgow rail links means that Falkirk enjoys some of the most regular services in Scotland, making it ideal for commuting.
It may not be the prettiest town in Scotland but it is a fine example of the potential of property investment in the Forth Valley, being well situated and appointed.
The town has a history of heavy industry, with the Carron ironworks featuring heavily in the town’s past. Sadly, much of this is now long gone, however Falkirk has a busy retail sector as well as being the home of Falkirk Council, a major employer.
It sits at the junction of the Union and Forth and Clyde canals, major drivers of the industrial past; these days given to more leisurely pursuits and Calendar park, with the remains of the Antonine wall, offers large, green space to locals.
With its retail sector serving customers from a wide area around the town itself, and the continuing presence of the petrochemical industries in nearby Grangemouth, Falkirk has a wealth of local employers.
In addition to the private sector, there are a number of public sector enterprises represented in the town, not just Falkirk Council, but NHS administration, the Child Support Agency and the Department for Work and Pensions all employ local staff.
The local paper, The Falkirk Herald, reported recently that property prices in the town continue to rise, albeit at a lower rate than previously. The average price of a house in Falkirk is currently £169,187, according to Land Registry data.
Rental prices are on a par with those encountered in similar Scottish towns, with CityLets indicating typical monthly rents of around £500 – £650 for town centre properties.
Rental yields have been attractive, with 9.51% reported in 2019/2020 for the FK3 postcode. Recent events and economic upheaval have undoubtedly affected those returns, with a November 2022 piece in Lofti suggesting a yield of 4.6%.
Alloa
Not sadly a Hawaiian greeting, but the administrative centre of Clackmannanshire, Alloa nestles on the north of the river Forth beneath the Ochils.
Despite being considerably smaller than either Falkirk or Stirling, Alloa has a rich history having been notable for its harbour, used to dispatch goods to Europe, brewing, distilling, weaving, glassmaking, coal-mining and wool production.
These days nearly all of the traditional industries have gone, leaving service industries and public services as the major employers.
Having lost its rail link in 1968, a new station was opened in 2008 along with a new line. Residents of Alloa now benefit from an hourly service to Glasgow, and by changing at Stirling travellers can reach other Scottish destinations.
Although not as conveniently situated as Falkirk and Stirling to benefit from road links, once south of the river there is easy access to motorways to Edinburgh, Glasgow and via the A9 or A91, to Perth.
Property prices in Alloa reflect demand, as you would expect. Rents are similar to those encountered in both Stirling and Falkirk, and it’s worth remembering that Alloa is close to Stirling, making commuting relatively straightforward.
Yields, according to Property XYZ, are currently 5.1%, again roughly in line with the other areas in the Forth Valley. House price growth across the Forth Valley has been higher than many other areas of Scotland at 12.9% over 12 months.
Advice from the property pros
We’ve said it before, and we’ll say it again; it’s tempting to focus on the exceptionally vibrant markets in Glasgow and Edinburgh to the exclusion of other areas of Scotland when looking to invest in buy-to-let property.
There are excellent reasons to consider the big cities, but there can be drawbacks, not least the higher cost of properties due to the greater competition from other buyers.
Areas such as the Forth Valley are always worthy of consideration, especially once you know what your investment strategy is. If you’re taking a longer view, and see rental property as a nest egg, the Forth Valley has much to recommend it.
As part of a mixed portfolio, rental properties in any of the areas we’ve covered could provide an element of balance and security in the longer term.
As always, it’s important to have a clear idea of your goals, and to build a strategy around those. With many years of experience in the Scottish buy-to-let market, we are well placed to offer advice and guidance, along with more practical help.
In summary…
The Forth Valley is a beautiful part of Scotland; true it lacks the rugged grandeur of the Highlands, but commuting is much easier, as is finding a decent coffee! It also has some fine investment opportunities.
If you would like to discuss property investment in the Forth Valley further, or indeed you would like to chat about any aspects of property investment, we are always happy to arrange a meeting, whether face to face, or through the wonders of technology.
Written by Ross MacDonald, Director of Sales & Cofounder of Portolio
Get in touch on 07388 361 564 or email to [email protected]
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