The Booming Rental Market in Glasgow – You Want to Be Part of It With Us?
Last updated: 9.42am, Saturday 9th October 2021
We look at the continued booming property rental sector in Glasgow, the reasons for it and how you can be part of it with us.
by Gordon Campbell
In a recent blog we did, The Growing Market of The Private Rented Sector in the UK ,we looked at the growing market of rented properties in the UK, especially in Glasgow and how we can help you create wealth and income in this sector.
- The value of the Private Rented Sector (PRS) in England, Wales and Scotland grew by 5.8% to £1.4 trillion in the last year according to a new report, The Changing Face of Buy-to-Let from Shawbrook Bank.
- British renters spend, on average 30.93% of their income on rent, an increase of 1% between 2019 and 2020.
- Glasgow provides the best rental yield of any UK city, with an estimated return of 7.52%. (Alliance Property Group properties offer far more return!)
- The rent in 4 London boroughs is more than 80% of the borough’s average salary. In Glasgow it is 32.8%.
- The Royal Institute of Chartered Surveyors (RICS) has reported that in order to meet growing demand, around 1.8 million new rental homes must enter the UK market within the next 10 years.
What About The Rental Market in Glasgow?
The Glasgow rental market continues to operate at pace with very high demand relative to supply pushing average rents 8.9% higher year on year.
Glasgow stood alone amidst the UKs and Scotland’s major cities again recording growth across all property (1-4 bed) types.
Why Is the Rental Market So Strong In Glasgow and Surrounding Areas?
In the strong and buoyant Glasgow economy, returning workers are helping to fuel a rise in rental demand across as well as in other major UK cities.
According to the analysis of 23 major UK cities, rental demand averaged 42.9% during the third quarter of this year, a 9.9% increase on the previous quarter and 6.8% higher than this time last year.
In summary the main reasons are:
- A supply shortage of property
- Strong local economy and continued job creation in all industry sectors
- Employees returning to the offices
- Relocation of new employees to Glasgow looking to rent long term
- International Students and UK students returning to the 5 Glasgow Universities
- People who have sold and looking to rent short term or permanently
- The mainstream renting market also continuing to meet local demands
Q3 2021 Rental Demand Market Movement
Glasgow has enjoyed the largest quarterly uplift with rental demand climbing by 22.1%.
Bristol (21.9%) and Edinburgh (21.5%) have also seen tenant demand lift by more than 20% in Q3, with Cambridge completing the top five (19.6%).
Other cities to make the top 10 where a quarterly tenant demand uplift are concerned include Manchester (14.8%), Newcastle (11.2%), Southampton (10.9%), Plymouth (10.8%) and Birmingham (10.5%).
Areas With Declines In Demand
Belfast has seen the largest decline at -40.9%, with Nottingham (-3.5%), Portsmouth (-3.3%), Liverpool (-2.9%) and Plymouth (-0.4%) also seeing a drop.
The UK has had a housing shortage for decades.
There is not one single reason for the shortage of housing.
It is a lot of different reasons and it is a big, deep and complicated subject to cover.
We have both invested in property for a while, me (Gordon) 28 years and James 10.
We have both only invested in Buy to Let Properties and have done very well from it.
Residual income every month, growing capital values and both truly financially free for some time.
More importantly apart from the financial benefit, we are helping others who need to rent property at all levels of the market, corporate or social housing.
That is what we do for you. Creating wealth and income while you help others that need property to rent.
We offer you an exclusive and unique service and a One Stop Shop Solution to investing.
If you are looking to invest in property and not sure where to start or looking for any advice, please contact us and happy to help.
Alliance Property Group. Making a Difference