Areas of Inverness: Buy-to-Let Property Investment Hotspots
Inverness is either the last city in Britain or the first... depending on which direction you’re arriving from. More interestingly though Inverness is also something of a fast-growing economic powerhouse... just the sort of city that property investors ought to take a look at.
Why Invest in Inverness?
Inverness is located in the Highland region of Scotland and is known as the 'Capital of the Highlands'. It is the northernmost city in the United Kingdom and lies within the Great Glen at its northeastern extremity, where the River Ness enters the Moray Firth.
Inverness is one of Europe's fastest-growing cities, with a population of nearly 50,000. It has experienced rapid economic growth, reaching a recent high of 86% growth in economic productivity—the highest rate in Scotland and the second-highest in the UK.
The traditional industries of the Inverness area include farming, whisky distilling, fisheries, and maritime industries. However, in recent years, many new industries have been established, including creative industries, energy, finance, business services, food and drink, life sciences, technology, and advanced engineering.
Inverness has excellent transport links, with an international airport offering flights to several UK and European cities, as well as outlying islands. The city is also served by the A9, A96, and A82 roads and has a railway station with services to Aberdeen, Glasgow, Edinburgh, and other local towns and villages.
Inverness is a great base for exploring the Highlands and is a popular destination for tourists, with attractions such as Culloden Battlefield, Inverness Museum and Art Gallery, Clava Cairns, and Fort George. It is also known for its vibrant restaurant and bar scene and offers a wide range of shopping options, from independent shops to large stores at the Inverness Shopping Park and Inshes Retail Park.
Inverness is a university city, with Inverness College, part of the University of the Highlands and Islands, located in the city. The university has around 6,500 students and offers a range of courses, from access level through to PhD.
Inverness has a strong and growing economy, with a diverse range of industries. The city has excellent transport links and a skilled workforce, making it an attractive location for businesses.
Inverness Campus, a world-class business location for life sciences, digital healthcare, and technology companies, has seen significant investment in recent years. The campus brings together businesses, researchers, academics, and scientists to collaborate and innovate.
Inverness also has a thriving tourism industry, with around a million visitors each year. The city's rich history and culture, proximity to Loch Ness, and stunning natural surroundings make it a popular destination for tourists.
Inverness has a range of incentives to attract investment, including the Inverness City Region Deal, which aims to unlock £1 billion of investment in skills and infrastructure. The city also has a range of grants and funds available to support businesses, including the Inverness and Highland Business Fund and the Inverness and Highland Business Gateway.
Inverness offers a unique combination of a strong and growing economy, excellent transport links, a skilled workforce, and a vibrant cultural and natural environment. These factors, along with a range of incentives and support for businesses, make Inverness an attractive location for investment.
Transport Links
Inverness has excellent transport links, with a range of options for getting to and around the city.
- By Air: Inverness Airport offers regular flights to other parts of the UK, Ireland, and Europe, including major connections like London Heathrow, London Gatwick, Bristol, Manchester, Amsterdam, and more. The airport is located just 8 miles east of the city, and transport to and from the airport is convenient, with a dedicated shuttle bus service (Stagecoach bus number 11) and taxi and car hire services available.
- By Train: Inverness Train Station is located in the city centre, alongside the bus station. ScotRail operates four lines from Inverness, connecting the city to Aviemore, Perth, Edinburgh, Glasgow, Aberdeen, Elgin, Kyle of Lochalsh, and Wick. Inverness is also served by the Highland Caledonian Sleeper train, which operates from London.
- By Bus: Inverness Bus Station is located in the heart of the city centre. Several bus services connect Inverness to other cities in Scotland and Great Britain, including Megabus, CityLink, and Scottish Citylink. Stagecoach operates a local bus service within Inverness, making it easy to get around the city.
- By Car: Inverness is accessible by road via the A9, A96, and A82. The city is approximately 157 miles from Edinburgh and 174 miles from Glasgow. Car hire is available at the airport and train station from companies like Budget, Sixt, EasyDrive, Focus, Avis, and Europcar.
Local Attractions
Inverness has a wealth of attractions and amenities, from historic sites to natural wonders. Here is a list of some of the best things to see and do in and around the city:
- Inverness Castle: This ancient fortress has stood since the 11th century and offers panoramic views of the city and the Highlands from its viewpoint.
- Inverness Museum and Art Gallery: Delve into the art, history, and culture of the Highlands at this museum, which features a range of exhibitions, from archaeology to natural history.
- Inverness Cathedral: The most northerly Anglican Cathedral in the UK, dedicated to St. Andrew, with intricate stone and wood carvings and glorious stained-glass windows.
- Eden Court Theatre and Cinema: The largest entertainment venue in the Scottish Highlands, hosting a range of performances, from drama and dance to opera and musicals.
- River Ness: A peaceful river flowing through the city, great for fishing and offering picturesque walks along its banks.
- The Ness Islands: A group of small islands in the River Ness, connected by Victorian footbridges, offering a tranquil escape from the bustling city.
- Inverness Botanic Gardens: An oasis of calm with tropical and desert plant life, colourful gardens, and impressive glasshouses.
- The Highlanders' Museum: Located within the grounds of Fort George, this museum covers three floors and is the largest regimental military museum in Scotland outside of Edinburgh.
- Culloden Battlefield: The site of the last pitched battle fought on British soil, now home to an informative visitor centre with immersive exhibits and artefacts.
- Clava Cairns: A 4,000-year-old Bronze Age cemetery, made famous by its appearance in "Outlander", featuring passage graves, standing stones, and ring cairns.
- Tomatin Distillery: A 4-star visitor attraction, offering a range of tours and award-winning whiskies, just 16 miles south of Inverness.
- Leakey's Bookshop: The biggest second-hand bookshop in Scotland, housed in a former Gaelic church, with a log fire and an extensive collection of books.
- Dolphin Spirit Inverness: A boat tour along the Inverness Firth to spot wildlife, including bottlenose dolphins, seals, and whales, with the chance to learn about local history and folklore.
- Fort George: An 18th-century artillery fortification, the largest in Britain, built to defend against Jacobite unrest, with a museum detailing the uprising and the chance to spot wild dolphins.
- Loch Ness: The famous loch, home to the elusive Loch Ness Monster, is just a 30-minute drive or bus ride from Inverness, offering boat tours and the chance to explore the ruins of Urquhart Castle.
- Cawdor Castle: A 15th-century castle, with roots dating back to the 14th century, featuring three beautiful gardens and a rich history, including connections to Shakespeare's "Macbeth".
- The Caledonian Canal: A 60-mile waterway running through the Great Glen, connecting Fort William to Inverness, with walking and cycling paths along its towpaths.
- The Victorian Market: A covered market in the city centre, dating back to the 19th century, home to independent retailers, cafes, and services, and a great place to try traditional Scottish dishes.
- Abertarff House: The oldest house in Inverness, dating back to 1593, now owned by the National Trust for Scotland, offers a glimpse into life in the 1600s.
Property Values
The average house price in Inverness has seen a slight increase over the past year. According to Zoopla, the average sold price for a property in Inverness in the 12 months up to April 2024 was £218,602. This represents a rise of 5.2% over the previous 12-month period, with the average price as of February 18, 2024, being £202,000.
Inverness remains an attractive option for those seeking more affordable property options within the UK, with prices significantly lower than in cities like Edinburgh.
The Inverness property market is expected to remain stable in 2024, with steady demand and a consistent supply of properties. The city's growing economy and popularity as a tourist destination are expected to contribute to a healthy property market.
Inverness estate agents anticipate a rise in sales and a restoration of trust in the market as inflation settles and mortgage rates reduce. This is expected to encourage more buyers to enter the market, particularly those seeking more affordable options outside of the most expensive cities in the UK.
Rental Demand
The rental market in Inverness remains strong, with a variety of property types available, from apartments and flats to houses and bungalows.
According to Rentberry, the average rent for an apartment in Inverness, UK is £823 as of April 2024. This figure represents a flat trend in monthly rent prices compared to the previous month.
Home.co.uk provides a more comprehensive overview of the rental market in Inverness. They report that as of May 2024, the average monthly rent in Inverness is £868. They further break down the data by property type and number of bedrooms:
- 1-bedroom property: £675 pcm
- 2-bedroom property: £790 pcm
- 3-bedroom property: £1,225 pcm
Renthero.co.uk, a rental platform, offers additional insights into the Inverness rental market. They report that rent in Inverness will lie between £695 and £2,400 per month.
Inverness offers competitive rental yields for investors. Property.xyz reports that investors can achieve average gross yields of around 6.5% in Inverness, specifically in the IV1, IV2, and IV3 postcode areas.
Baron & Cabot, a UK property investment firm, includes Inverness in its list of cities with good rental yields in the UK for 2024. They highlight the North of England as outperforming the South, with average yields around 7.4%. Inverness, as part of the Scottish region, benefits from these favourable rental yield trends.
The Inverness rental market is expected to remain robust, driven by the city's strong economy and popularity as a tourist destination. The diverse range of property types and locations ensures a steady demand from various tenant groups, including students, young professionals, and families.
Inverness's rental yields are projected to remain stable or improve, influenced by the UK's rental market trends. Zoopla reports that rents across the UK are forecasted to rise four times faster than house prices between the end of 2022 and the end of 2026, which could further enhance rental yields.
Inverness presents a favourable rental market for both landlords and tenants. The city's strong economic performance, diverse industries, and popularity as a tourist destination contribute to a healthy demand for rental properties. With rental yields above the UK average, Inverness is an attractive prospect for investors seeking stable and profitable opportunities.
The Best Places to Live in Inverness
Inverness offers a range of desirable locations to live, from the bustling city centre to peaceful suburban and rural areas. Here is a selection of some of the best places to live in and around Inverness:
- Ballifeary: Located just west of the city centre, close to the River Ness, Ballifeary is a highly sought-after residential area. It offers leafy streets and a serene atmosphere, along with easy access to the city centre. The area boasts a mix of stunning period properties and elegant modern homes, creating a unique blend of architectural styles.
- Crown: One of the most desirable areas in Inverness, Crown is located just south of the city centre. It is characterised by elegant period properties, including Victorian and Georgian homes, and picturesque tree-lined streets. The area offers easy access to amenities, theatres, museums, and art galleries, making it a popular choice for those seeking an exceptional quality of life.
- Culduthel: Culduthel is a highly sought-after area for families, known for its friendly atmosphere, excellent schools, and abundance of play areas and recreational facilities. Located south of the city centre, it benefits from excellent transport links and provides easy access to the wider Highlands and natural attractions like Loch Ness and the Cairngorms National Park. The area offers a mix of housing styles, including detached houses, townhouses, and apartments.
- Clachnaharry: This former fishing village, now part of Greater Inverness, is renowned for its picturesque setting along the Caledonian Canal. Clachnaharry offers a blend of natural beauty and convenient access to amenities. The area features traditional cottages, modern townhouses, and spacious family homes, many boasting stunning views of the canal and surrounding highlands.
- Culloden: Located on the outskirts of Inverness, Culloden offers a blend of serene countryside living and convenient access to urban amenities. The area is steeped in history as the site of the Battle of Culloden in 1746. Culloden boasts breathtaking natural landscapes, with rolling hills, lush fields, and views of the Moray Firth. It also provides good transport links, including easy access to the A9.
- Smithton: A vibrant and family-friendly suburb, Smithton offers a superb quality of life with convenient amenities and beautiful surroundings. The area benefits from a variety of amenities, including a retail park, supermarkets, and leisure facilities, as well as easy access to the city of Inverness for additional shopping, dining, and cultural experiences.
- Westhill: This inviting suburb boasts a blend of modern amenities and natural beauty, along with a strong sense of community. Westhill is conveniently located on the western outskirts of Inverness, with easy access to shops, supermarkets, and restaurants. The neighbourhood is also known for its captivating natural surroundings, nestled amidst rolling hills and scenic landscapes.
Whether you're seeking a vibrant city centre location, a tranquil suburban neighbourhood, or a rural retreat, Inverness has a variety of desirable places to call home.
Property Investment in Inverness
Inverness city centre and the area to the immediate south of the centre is a popular city-centre living location. As well as easy access to the city centre amenities buyers and tenants here are within easy reach of the main commercial area of Longman just to the north of the city.
City centre property types are often older stone-built and often Victorian properties including flats, terraced houses, semi-detached and detached houses with gardens but there are some newer build properties. Crown is a popular inner suburb that is partly a conservation area. It benefits from closeness to the city centre but has a villagey feel.
The Inverness suburbs are mainly post-war properties often on small private and social housing estates. There are a number of new-build estates and more are planned. Although there are some flats and terraces in the suburbs predominant property types are detached and semi-detached houses and bungalows with gardens.
West of the city centre, separated by the River Ness and Caledonian Canal, are the districts of Ballifeary, Bught, Dalneigh, Kinmylies, Merkinch, Scorguie and South Kessock. Riverfront properties on this side of the city include some of the most sought after by buyers and tenants.
Charlestown and North Kessock are across the Kessock Bridge on the Black Isle (a peninsula rather than an island) and are popular with Inverness commuters.
South and east of the city centre are the Inverness districts of Culcabock, Culduthel, Drakies, Holm, Inshes, Lochardil, Milton of Leys and the Raigmore Estate. Each district is quite different and a range of budgets is catered for.
Further to the east, across the A9 road, are the villages of Balloch, Cradlehall, Culloden, Inshes Wood, Resaurie, Smithton, Westhill and the new sustainable town of Tornagrain. These areas benefit from close proximity to the retail and business parks on this side of the city, the airport and the A96.
Investors considering Inverness might also look at the small towns and villages surrounding the city for more investment opportunities. Villages with some shops, a school and good transport links into Inverness are likely to be most popular with tenants. Beauly to the west of Inverness, the small town of Nairn to the east and villages on the Black Isle are popular with those who work in Inverness.