Current Property Rental Market, Interest Rates and Forecast

by Gordon Campbell

March 2025

Rents have powered ahead of earnings across most UK cities over the last decade.

Glasgow, the second highest n the UK  after Edinburgh has recorded rental inflation of almost 80% in a decade closely followed by Bristol, Newport and Manchester. Rents in London have grown by 34% over the same period. 

There continues to be, and it will NEVER change, there is more demand than supply than demand for properties to buy or rent.

That is why Glasgow property market is one of the most solid in continual demand for rent in the UK due its diverse and thriving local economy and population growth.

To meet that demand, 300,000 new homes are homes a year are required.

Absolutely zero chance of that ever happening.

What Effect Has or Will Interests Effect Demand?

The Bank of England has announced that it will reduce the Base Rate by 0.25%, taking it to 4.5%, in the first decision of the year.

Base Rate was held at 4.75% in December after two cuts in 2024.

That is already having an effect in the local market as buyers confidence continues to rise.

That means:

More people are buying property.

Less choice for investors

Greater competitiveness to buy properties….. and yes, prices will continue to increase.

Supply and demand.

More demand than supply. 

Waiting for that perfect moment of a property at a certain price, or

rent or interest rate is not going to happen I am sorry to say.

Buying sooner allows you to secure a investment property before the price goes up again and you miss out altogether.

And remember…….Alliance offers you off market, below market properties, in the right areas with capital and rent growth, that you are highly unlikely to get anywhere.

That gives you a massive unfair advantage against other investors.

Alliance Property Group. Making a Difference