Father-of-two Kevin Whyte, who bought a two-bedroom flat in Newtongrange after hearing about PSL, was the first landlord to get on-board the scheme in Midlothian.
The first tenants are already being re-housed under the PSL scheme.
Kevin, 36, who owns a cleaning company, said: “I heard of so many people investing in property but the risk had put me off in the past. I view this as a long-term investment, one which will help when I retire.
“There is always an element of risk being self-employed. Investing in property is a safeguard. It is also nice to know I have that investment for my two children. Midlothian is a great place to invest as I have found property prices to be lower than other areas. PSL is a great scheme for investors here.”
The first PSL contract in Scotland was signed between Orchard & Shipman and The City of Edinburgh Council (CEC) in September 2005, with the company required to find 1,500 properties by 2010. Such has the success of the Edinburgh scheme been that Orchard & Shipman has already secured some 1,100 properties – two years ahead of target – and the scheme is already the largest of its kind in the UK.
Midlothian Council tendered first to set up a PSL contract in the district but was later joined in a combined tender by Scottish Borders and East Lothian Councils – providing a good example of local authorities saving taxpayers money by joint working towards a shared objective. There has already been more than 1,000 inquiries from would-be landlords in across the three regions.
Angela McLachlan, Director of Operations Scotland for Orchard & Shipman, said she was delighted landlords were jumping on board the scheme.
She said: “Signing up our first batch of landlords and tenants so soon is a major landmark for PSL in Midlothian. It shows the level of interest for PSL in Midlothian. We are looking forward to getting more interested landlords signed up and get the scheme in Midlothian, as well as in East Lothian and the Scottish Borders, as firmly established as it is in Edinburgh.”
Angela said PSL is an important tool that councils can use to address what is an increasingly important social issue in their communities – as well as allowing private landlords to feel they are giving something back to society.
She added: “PSL works because it benefits the council who faces huge demand to provide housing, the people desperate for quality accommodation in areas that they want to live in and private landlords who see the benefits of long-term income for their investments.”
Landlords are attracted to the scheme as they receive a guaranteed rental income, with no voids, for three to five years with no agency fees.
Kevin, of Prestonpans, who has used the scheme as his first foray into property investment, said: “What attracted me to the PSL scheme was the sheer ease of it all. For me there is minimum output but still a guaranteed income. And property does not decrease in value so as long as I can cover my mortgage I will make a profit.
“I am already looking to buy more properties for PSL.”
Currently, there are 3,600 people on Midlothian Council’s Housing Waiting List, with around 800 homeless cases being presented every year. The percentage of private rented property in the district’s entire housing stock is just five per cent, all of which highlights the difficulties the council has in finding available properties to house people in housing need.
A Midlothian Council spokesman said: "Midlothian Council is very happy that the scheme is already proving popular in the area. The Council is very aware of increased numbers of those seeking housing and the waiting times involved. We are confident that PSL will have a major impact in alleviating these issues. We are glad Orchard & Shipman has already secured significant interest in the scheme and we look forward to witnessing the positive impact PSL will have on housing stock in Midlothian.”
Issued on behalf of Orchard & Shipman by Holyrood Partnership. For further information please contact Suzanne Mackie on (0131) 561 2244 or email info@holyroodpr.co.uk.