Scottish rental property has been reported as garnering the best returns on buy-to-let property investments when compared to the rest of the UK market.

Average returns in Scotland were at 16% last year, compared to just 13% in the rest of the UK - and now the average price of a buy-to-let property has broken the six-figure mark for the first time, currently standing at £100,936 - an increase of ten percent. A typical monthly rent stands at £523 after an increase of 6.3% according to the Bank of Scotland - above the UK average of 4.5 percent.

Private tenants in Scotland have also seen greater increases in their rents than their English and Welsh counterparts - 2% higher than the average in the UK. The director of Braemore Property Management in Edinburgh commented:

"Capital growth has remained on a strong upward spiral since the end of the last flat market in 1993."

Life is not easy for newcomers to the buy-to-let market in recent months though - higher interest rates, low wage growth and a slowing of the rise in property prices are making investment in this area a bit tougher for would-be landlords. The ESPC (Edinburgh Solicitors Property Centre) warns that investors should not rush into the market and advises potential investors for work out their investment strategy well in advance.

Despite the warnings however, the potential continuing rise in rental yields may provide encouragement for long-term investors - even though the market is slightly subdued at this time.

Check out rental property in Scotland on Lettingweb.com