Q3 2023 House Price, Rental and Economic Update

Gordon Campbell

July 2023

This year a lot has happened.

The global economy has faced a tumultuous year.

But, despite all the negativity we’ve seen, the economic and property market in Glasgow and surrounding areas remains very strong.

Estate and letting agents in Glasgow continue to see demand outstrip supply and remain above 2019 levels, with rental demand far outstripping supply, pushing rents up to strong levels and yields.

The Media

At times of uncertainty, especially following a period of buoyant housing market activity, it is a national pastime to predict ‘a house price crash’ or ‘market collapse’.

Although such forecasts tend to be highly inaccurate, they still garner screeds of coverage, probably because they act as very effective clickbait.

The media has certainly had a field day and the coverage has been very extreme too - picking up the energy crisis, food prices and mortgage rates and throwing the negativity out there like its the end of the world.

The media do have a lot to answer for in proliferating fear through sensationalised reporting in my opinion.

It's not all doom and gloom as the media enjoy portraying. 

Scottish Economy

The Scottish economy is growing faster than any other part of the UK and higher than many parts of other European countries.

Economic growth in Scotland was four times higher than the rate previously revealed for the UK as a whole in the first quarter.

The Scottish Government figures showed gross domestic product in Scotland in the opening three months of 2023 was up by 0.4% on the fourth quarter of last year.

UK GDP grew by only 0.1% quarter-on-quarter in the opening three months of this year, according to previously published figures from the Office for National Statistics.

Comparing the first quarter of 2023 with the opening three months of last year, Scottish GDP was up by 0.3%.

This is ahead of year-on-year growth of 0.2% in the first quarter in the UK as a whole.

Inflation in UK is predicted to be under control and reducing through 2023 and beginning of 2024.

Other European Countries

The EU is in minus growth and Germany in recession.

The U.K. economy is now considerably larger than that of France.

The U.K. is Europe’s no1 destination for inward investment.

We have rolled over all EU trade deals and added Australia, New Zealand and the Trans Pacific for starters.

We have selective deals with USA.

We no longer pay £22billion per year to the EU.

Slow, steady and big progress.

Glasgow House Price Growth

• Our focus area is Inverclyde, one of the metropolitan areas of Glasgow, was the second fastest area of growth in Scotland between April 20222 and April 2023 at 12%.
  
  
• It was also one of the highest capital growth areas in the UK:

Rental Supply and Demand

On average in the Glasgow demand is 86% higher for all rental stock compared to the average market, and there’s 18% less (and more coming) stock on the market available to rent.

According to the ONS rents are growing at the fastest rates by some way since they started their records in 2006.

Summary

There will always be ups and downs in property with challenges.

Look through the continual negative media click bait headlines and look at the real situation.

There is more demand than supply and that will not change.

We give you a massive head start that no one else gets in that journey to offer you off market, below market properties at the right price, right area, right street, right capital and economic growth.

That is what we have been doing to investors for the last 9 years and as investors ourselves for a combined 42 years. And very successfully.

In 5-10 years time a first time buyers ability to buy will be almost out of reach for the average person.

That will mean a nation of renters.

The only question is who is going to be the landlords?

Will you be one of them?

Please contact us for a no obligation discussion in how we can help you achieve wealth and income through our 42 years’ experience and expertise as investors and landlords, giving you access to our exclusive off market and below market properties, our power team, holding your hand at every stage of the process, and building long term relationships.

Thank you for reading.

Alliance Property Group. Making a Difference.