Is Now a Good Time to Invest in Glasgow Property?

Last updated: 4.41pm, Friday 22nd May 2020 by

We look in detail what history tells us, the current and future expectations in the Glasgow property market.

By Gordon Campbell
21st May 2020

 

Things will never be the same in the world as they were before, for sure.

 

But property will remain as the safest world class asset through any economic turmoil, from experience and going by the historical facts and information from the commentators.

 

Do we have any control over what's happening right now?

 

Absolutely not.

 

We only have control over how we react to it.

 

We choose to remain positive and look for and go by the lessons that have be learned in the past by us as experienced landlords and investors and as shared in a recent blog

 

We shared recently the past experiences during market changes and the opportunities that came from it. CLICK HERE

 

Is the UK heading for a recession?

 Yes, as all world economies are.

 

The Bank of England has warned that the UK economy is heading towards its sharpest recession on record.

The coronavirus impact would see the economy shrink 14% this year, based on the lockdown being relaxed in June.

Andrew Bailey the Governor of the Bank of England described the downturn as "unprecedented", and said consumers would remain cautious even when lockdown restrictions are lifted.

Mr Bailey said: "Not all of the economic activity comes back.

 

There's quite a sharp recovery. But we've also factored that people will be cautious of their own choice”

“While UK growth is expected to rebound in 2021 to 15%, the size of the economy is not expected to get back to its pre-virus peak until the middle of next year”

 

There is no doubt it is going to be a rough time for some people and businesses.

And remember…..

The economy is the overall picture and does not relate to property where the impact will be less, if at all!

 

We are in a better position than we were in 2008/09, when the entire international capitalist system was under real threat.

The banking sector is much more robust and the economic fundamentals give some encouragement to a ‘V’ rather than a ‘U’ or ‘L’ shaped recovery once we get to the other side of the pandemic.

 

What is expected with the economy in Glasgow?

Despite being the 4th largest city in the UK , like everywhere else we will be impacted but due the underlying strenght, depth and diversity of the economy in Glasgow will help to minimise and impacts.

The resons for this is given in detail in a recent blog What Is Happening in The Glasgow Property Market (click on link)

 

What about property prices in Glasgow?

Despite a difficult end to the first quarter of 2020, activity has already begun to return to the sector.

And while transactions may be carrying on at a much slower pace, people and businesses are finding ways around the barriers to keep the market moving.

Once the lockdown is further relaxed, estate agents in Glasgow are expecting a very busy few months as buyers and sellers who have been put on hold by lockdown re-enter the market with enthusiasm born out of frustration.

Property portals are already reporting record numbers of people visiting their sites in the 24 hours after lockdown e.g. Rightmove, On The Market and Zoopla

Despite the current situation, Savills (click on link) five-year projections still show a 15% house price rise by 2024.

 

This is for the UK property market as a whole, and certain locations like Glasgow have even higher forecasts.

 

 What does history tell us about house prices in Glasgow?

Here is a chart of house prices in Glasgow since 1970 that highlights the continued strong growth despite any economic interruptions.

Why is that?

Simple. It is supply and demand.

Demand outstrips supply. It always has and always will.

But has to be the right property, in the right location, at the right price at the right time.

That is what Alliance and our market in Glasgow offers.

Glasgow is the Buy to Let Capital of the UK.

Buy to Let, as boring as it may seem for some investors, is the bedrock of property investment in the UK.

It has made a lot of people very wealthy and many investors we have helped in the last 6 years.

More than ever now, BTL will be increasing in demand due to social distancing and sharing restrictions in properties.

That is why Alliance Property Group sells Buy to Let property with multiple strategies that are:

Off Market, Below Market Value, Strong Yields, Strong Cash Flow and Areas of Demand.

House Prices In Glasgow Since 1970

Last Thoughts

Property investment is a safe haven for investors.

Investing in bricks and mortar is one of the top investment routes for many investors.

It is considerably less volatile than stock markets, many investors also prefer to have a physical asset.

Return on investment comes from both rental income and capital appreciation. While property prices can go up as well as down, successful investors tend to take a long-term view.

And remember:

We are here to help.

We are here To Make a Difference

 

For those of you who are serious about putting your money to work and would like to have a more in-depth chat, we would love to hear from you.

 

Take care and thank you for your continued support and business.

It is appreciated

 

Gordon and James