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Growing rental yields make property an attractive investment once more as banks are starting to pass on lower interest rates and property outperforms alternative investments.

In recent weeks, Edinburgh property management specialists Cullen Property have seen a number of enquiries from prospective investors attracted by the potential of a monthly return on their investment.

At the same time, a number of the company’s existing investor clients have seen returns on their investment improve over the past few weeks.

Operations Director Steve Coyle explains: “Traditionally, property investors look for the value of their property to grow over a number of years and rental yield wouldn’t be their primary concern.

“However, falling interest rates on tracker mortgages have meant lower monthly mortgage payments for a number of our investor clients and with rents remaining relatively stable many are now seeing a much greater monthly rental yield from their investment.

“While the property market overall is still bottoming out, stronger rental return have made property an attractive investment option once again with some clients achieving a rental return of well over 10% on their investment.

“With the Bank of England base rate at an all time low, investors are positioning themselves to re-enter the market and high rental yields will help them decide when to buy.

“We expect to see a lot of investor activity once confidence begins to return to the market.”

Cullen Property currently manages approximately 300 properties across Edinburgh. The company offers a full management service, including property sourcing, lettings and refurbishment.