Residential property 'obvious choice' for investors.

Residential property has become "an obvious investment choice" for those looking to save money, it has been claimed.

There is now a general perception that residential property is attractive to a wide range of investors, according to Matthew Benson and Tony Perriam from Scottish property agency Rettie & Co.

Director of new land and homes, Mr Benson and director of residential sales, Mr Perriam, stated that unlike equities, bonds or pension plans, property is relatively easily understood by the public, as they have direct experience of it.

The pair also revealed that yields from rental incomes were "not unattractive" compared with the yields offered on most equities and many bonds.

When combined with the prospect of capital growth and the ability to borrow a large percentage of the purchase price, one can see why it has become so popular, they explained.

With recent figures from Lloyds TSB showing a "surge" in house prices in areas of Scotland - with Aberdeen experiencing a rise of 25 per cent in the last year and Edinburgh of 12 per cent - they said that Scotland is one place that is popular with investors.

They commented: "As people seek to invest in property more widely, and seek 'value' outside their own immediate living area, attention has focused on those areas where property is perceived to be relatively cheap compared with comparable property elsewhere."

Tenant deposit scheme 'helps protect landlords'

Landlords across the UK are being urged to investigate tenant deposit schemes, which were set up by the government in April to benefit both owners and tenants of rental property.

The scheme aims to provide security for deposit monies and help increase the speed of resolving cases in which landlords and tenants cannot reach an agreement about returning the deposit.

However, not all buy-to-let investors are aware of the scheme, according to new research.

A study by Alliance & Leicester Mortgages found that just over half of landlords were unaware of the scheme.

In addition, it indicates that nearly a quarter of respondents had heard of it but did not understand the significance of the measure.

Some 29 per cent of landlords said they would be interested in learning more about it, the figures reveal.

Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, commented: "The tenant deposit scheme is designed to give both tenants and landlords peace of mind and in the event of any dispute, all cases will be treated fairly.

"This should make both renting and letting a less stressful experience overall and hopefully the landlord/tenant relationship should shake off the traditional image of warring partners."

Landlords 'opt for fixed-rate deals'

Fixed-rate mortgages are continuing to grow more popular for those buying properties, according to new research.

Figures from Mortgage Trust indicate that the number of borrowers choosing fixed-rate deals is at an all-time high.

Additionally, they state that 78 per cent of buy-to-let landlords have been opting for fixed rates.

John Heron, group director of mortgages at the Paragon Group, which owns Mortgage Trust, remarked: "Landlords are, in the main, shrewd investors, aware of the financial environment in which they are operating.

"As rates have started to rise, they have sought to ensure that they remain in a financially stable position."

Landlords' attitudes towards interest rates vary from the short-term to the long-term, he added.

Most expect a further base rate increase to be announced soon, Mr Heron explained, while at the same time they are looking to capitalise on improved variable rates over the course of the next two years.

Fixed-rate mortgages have grown since September 2006 to comprise more than 60 per cent of the total market, the study reveals.

Previous to the latest spate of base rate hikes by the Bank of England's monetary policy committee, this type of mortgage made up 48 per cent of the market.

Meanwhile, the Council of Mortgage Lenders said yesterday that there were 170,000 mortgages approved for all purposes in April.