As Scotland’s largest city, Glasgow is home to a number of world-renowned universities, a growing tech industry, and some some of the county’s biggest and busiest hospitals. Consequently, Glasgow’s property sales and letting markets have always been relatively strong due to consistent demand. In the past five years, however, there has been a particularly sharp increase in demand in both sectors, with solid annual growth reported in the property market across the whole of Scotland.
According to statistics from Rightmove, the sale of 1-2 bedroom properties in Glasgow has increased 10.5% in the past five years alone. Over the same period, the sale of 3-4 bedroom homes has risen by an incredible 15.8%. Scotland-wide, the price of property has also continued to rise steadily during that time, most notably throughout 2017, with the strongest growth reported in Edinburgh, Glasgow, East Renfrewshire, and East Dunbartonshire.
With record-low interest rates still in place, as well as an increase in mortgage approval numbers, there’s rising demand from first-time buyers and those looking to move up the property ladder in Scotland. However, there is also an overall shortage of properties for sale. Not only does this lead to quicker sales and higher sale prices, it also affects the property letting market. When house-hunters find themselves unable to buy a property, the only alternative is to rent, which increases demand and drives rental prices up.
Private sector rent increases
In Glasgow, private sector rent has increased 20-23% in the past five years. Whilst this is significant, new research commissioned by the Scottish Greens in Edinburgh reveals that private sector rents in the capital have increased by up to 40% over the past seven years. A great time for buy-to-let landlords, but a challenging time for those looking to rent, particularly given the huge disparity between rent increases, inflation, and the median wage.
This current climate presents an ideal opportunity for property investors, especially those south of the border where prices are generally much higher. What’s even more promising for investors is the fact that sales prices appear to be relatively unaffected by recent political developments, demonstrating the remarkable resilience of Scotland’s property market and the return of buyer confidence. This is most definitely thanks to buyer confidence and demand in Edinburgh and Glasgow—the two most significant driving forces in the Scottish property market.
Unlike the property markets in affluent English cities like London and Manchester, both of which have experienced a small decline in sales prices following the Brexit vote, the Scottish market is showing a different trend that is incredibly appealing to UK and international investors. The relative affordability of Scottish properties, combined with market stability, continued growth, and increasing rental demand, creates an ideal opportunity for potential buy-to-let investors who’re looking for lucrative rental income and long-term capital gains.
Vanilla Square – highly personal sales and lettings! Whether selling or letting property, you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers and landlords maximum exposure. If you’re looking to buy, sell, rent or lease your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.