TAY Letting has bought a portfolio of 118 residential properties across central belt of Scotland on behalf of a number of clients for £10 million.

The move was described as a strong vote of confidence in the Scottish residential property market.

The deal with Places for People had been tabled before lockdown and picked up again by investors as restrictions eased.

The portfolio of properties is spread across eight developments in Glasgow, Edinburgh, Paisley, Rutherglen and Hamilton with an estimated combined rental value fully let of approximately £810,000 per annum.

Savills director George Hepburne Scott, who acted for Places For People, said: “The fact that this portfolio attracted considerable interest from a range of parties underlines the growing strength of the PRS market in Scotland.

“The market has been driven by rising urbanisation, smaller households, and increasingly unaffordable house prices.”

READ MORE: Work under way on new sensory garden apartments in Glasgow

The purchasers were represented by Tay Invest and Scarlett Land and Development. Tay Invest, Tay Letting’s investment arm, was launched in 2018 to help clients expand their property portfolios. Tay Letting director Marc Taylor said he believes the deal shows residential property “stood the test of Covid”.

“With the volatility of the stock market, and the pensions of many people at risk, we’ve certainly experienced increased appetite from investors looking to safeguard their future with credible buy-to-let investments,” he said.

“The demand for rental property is incredibly high across the Central Belt because of under supply of new housing.” He also said: “I think it is a big number and if anything it shows the confidence that investors have in the residential market in Scotland.

“The deal started around January and February, we carried out the due diligence and had an offer on the table before Covid.

“Obviously things were delayed during Covid but as we were coming through the other side the investors were still quite happy and we delivered on the deal on September 4. It is a good, sizeable deal and certainly shows the confidence that investors have in the Scottish property market.”

READ MORE: Candleriggs Square in Glasgow: housing development on former fruit and vegetable market takes major step forward

He added: “This could range from somebody who has taken a hit on their pension and they are looking to buy one investment property in Ibrox at £65,000. The same principles apply, folk are seeing residential property as a viable investment outlet.”

Will Scarlett of Scarlett Land and Development, who acted for the buyers alongside Tay Invest, said: “This transaction, which started pre-Covid, demonstrates once more the resilience of the Private Rental Sector (PRS) as a relative safe-haven for investors at a time of economic uncertainty.”

Tay Letting, Scarlett Land and Development, Turcan Connell, Harper MacLeod, MacRoberts, and CMS acted for the purchasers. Meanwhile, Savills and Womble Bond Dickinson represented Places for People.

Sites include Bellwood Street and Parsonage Square in Glasgow, Overtoun View in Rutherglen and Campbell Close in Hamilton.

Tay Letting expanded into Dundee with the acquisition of one of the city's oldest property agencies last month. The move to take over Lickley Proctor Lettings followed Glasgow-headquartered Tay's launch into Edinburgh two years ago.