A STRONG year for the buy-tolet market is on the cards, according to one of the country’s leading lettings and property management companies.

Ian Wilson, managing director of Martin & Co, which has 105 offices in the UK and Ireland, said: “We believe demand for private rented property will remain high, helped by people moving to Britain from other parts of the European Union and record numbers of students in higher education.”

The company says a survey of its offices shows Scotland with the consistently highest yields for landlords.

Aberdeen tops the table. Prices are rising but you can still obtain a one-bed flat for £50,000. However, the best yields were three-bed houses, which sell for £75,000 and rent at £650 per month – a yield of 10.4%. In Fife, 10% yields are achievable from studio flats costing just £30,000. Glasgow and Ayr are good bets with 8% yields on one-bed flats.

Surprise results in the survey were good yields in south-east locations: Southend-on-Sea and Eastbourne had smaller flats achieving 8%. Kensington and Chelsea produced a remarkable 8.8% yield on two-bed accommodation and although the entry price of £460,000 is high it's a good long-term bet, in Martin & Co's view.

Widnes and parts of the northwest have strong tenant demand and 8% yields are achievable.

Wilson said: “We live in interesting times as far as the property market is concerned, but things look very buoyant now.

“Increased public concern about pension provision and the government’s decision to renege on its commitment to allow residential properties to be included in personal pension plans is also having a positive effect on the buy-to-let market.

“With widespread uncertainty about other types of investment, property remains one of the best bets in terms of long-term security for pension plans.”

“We see an opportunity for investors to drive great deals in the spring. There has been a lot of gearing up by medium-sized regional builders for the buying frenzy expected with A-Day pension changes in April and some of them will be looking to off-load stock at discount.”

The full results of the survey are at www.martinco.com