10 Nov 2016
Rents in Glasgow have risen by 20% in just five years
Rents in Glasgow have risen by 20% in just five years, new figures have revealed.
Rents in Glasgow have risen by 20% in just five years, new figures have revealed.
Market analysis by Citylets shows the city's rental market has been rising steadily over the last 10 quarters with average rents now standing at £719 per month as at Q2 2016, up 5% from a year ago.
Positive annual growth has been recorded in Scotland’s largest city quarterly since Q4 2013 as rents continue to track the national average at around just £50 below. Whilst not as steep, the current growth trend is reminiscent of Edinburgh whose unrelenting rise started less than a year earlier.
The Citylets Report to Q2 2016 records one-bed properties in Glasgow up 7.5% on the year to average £546 per month and taking just 24 days to let. 25% of one-bed properties in Glasgow let within a week and 70% within a month. Two-bed properties also recorded positive annual growth at 3.9% to stand at £724 with an average Time to Let of 27 days.
Larger three & four bed properties both rose sharply by 6.7% and 10.5% over the year to stand at £1040 and £1533 per month respectively reflecting the increased demand for family homes. Indeed four bed homes were the biggest risers as at Q2 2016 from the one, three and five year perspectives. Exactly 66% of all property in the Glasgow rental market now lets within a month.
Investing
For Landlords, investing in residential houses and flats to rent in Glasgow has returned significant gains for all property types from a one, three and five year perspective. Though not as steep as in neighbouring Edinburgh rents have still risen sharply in recent years with rises of 5.0%, 16.3% and 19.6%.
The five year picture for Glasgow rental market records all (1-4 bed) property types averaging growth of between 4 and 4.5%.
As per Edinburgh, rent rises have significantly outstripped inflation (CPI) and whilst this is fairly new for the City of Glasgow it is a trend that seems set to continue on current evidence.
Analysis
Adrian Sangster, National Leasing Director at Aberdein Considine, said Glasgow property has been a solid investment for landlords over an extended period.
"The Glasgow private rented sector has traditionally seen growth to be far steadier and less spectacular when compared to Edinburgh and until recently, Aberdeen," he said.
"With the headlines focusing predominately on these other cities, Glasgow landlords have quietly collected reasonable yields from their investments.
"However, as these figures show rental levels have increase more rapidly in the past couple of years with them now outstripping CPI when previously they ran more or less the same.
"This trend is likely to continue as landlords leave the sector as a consequence of changes to the UK and Scottish tax regimes leading to insufficient accommodation to meet the ever increasing demand of tenants.
"Glasgow will undoubtedly need to look towards the ‘build to rent’ sector to meet its accommodation requirements. However it is my opinion that until the political landscape stabilises and various uncertainties removed we will not see the private investment needed to build the level required in the city to meet the demand from tenants."
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