The property rental market in Glasgow remains strong in 2021 despite considerable challenges for letting agents. In Q1 of 2021, areas out with Scotland’s major cities did best. The impact of home working has fundamentally altered the priorities of many renters. Increased living space and easy access to outside space have moved to the top of the list. It looks likely that this trend will continue as home working or a mixture of home/office working is predicted to remain for the foreseeable future. The other big change in 2020/2021 was the sudden drop in the seasonal student rental market. This is expected to pick up for the new academic year.
The most recent Citylets report for Q1, 2021 reports on the ongoing effects the pandemic has had on average monthly rents, average time to let (TTL) and stock levels.
Q1 2021- Glasgow
- In Glasgow, the average monthly rent recorded by Citylets in Q1 2021 was £838 (£826 for Scotland). This is up 5.8% compared to the same period in 2020 and broadly similar to Q4 2020 (£847).
- The time to let (TTL) increased in Glasgow to 31 days (with a Scottish average of 38 days). This is 11 days longer than Q4 2020, but one day shorter compared to the same period in 2020.
- 58% of all properties in Glasgow were let within a month. This represents a significant drop when compared to Q4, 2020 (75%), but is broadly similar to the same period in 2020 (59%).
Q2 & beyond- how does the market look
- A detailed Q2 market analysis is not yet available. However, we anticipate increased activity as the student market returns. This has a significant impact on lettings in the west end, where properties are in close proximity to Glasgow University and easily commutable to city centre universities and colleges.
- Glasgow (along with the rest of Scotland) has recently moved to Covid Level 0. This represents a significant step towards near normality and it is expected that many other restrictions will be lifted on August 9th.
- There has been a mixed response to the Scottish Government’s extension of the provisions in the Coronavirus (Extension and Expiry) (Scotland) Bill, with some landlord representative groups expressing disquiet with some aspects. However, the proposed new grant to support tenants struggling to pay has been well received.
Glasgow was also mentioned in Property Reporter’s “Where are the top cities and towns to invest in 2021?” article, from October 2020. The article uses data from multiple sources taking account of both past and forecasted rental yields and capital growth. For Glasgow, the key statistics make good reading.
- Average Price: £194, 545
- Average Rental Yield: 5.2%
- Price Growth in Five Years: 15.05%
These are very good numbers and reflects the very positive outlook for the property letting market in Glasgow.
Western Lettings is a highly accredited letting agency in Glasgow specialising in property letting and property management. If you want to find out more about our services, please get in touch or give us a call on 0141 357 0436