Why Invest In Scotland
Stability. Ongoing economic investment. Growing market confidence.
Whilst many property markets around the world, such as China, Hong Kong and Bahrain, are currently struggling to offer some or all of these sentiments, the UK real estate market can, and that optimism is perhaps being felt most strongly in Scotland, particularly in Glasgow.
Scotland has not suffered from the unstable price swings the rest of the UK has.
We are seeing that already with the Glasgow property market driven by its economic growth enjoying 9.9% GVA economic growth over the past five years. This exceeds the Scottish average of 8.4% and is set to continue, with growth expected to reach 7.2% over the next five years.
Serious investors can buy at a discount and watch their investment grow as property prices rise again, resulting in equity growth for the future. Our business model at Alliance enables us to secure low priced properties and o er them to investors.
Glasgow property prices among the top three fastest accelerating in the UK
Data from the O ice for National Statistics recently revealed that property prices in Scotland rose 14.6% year-on-year, outpacing traditional investor hot spots like London.
Glasgow has the UK’s highest gross rental yields at 7.2%, compared to London at 4.3%, and house prices and average rents to grow by 4% a year through to 2020.
Buyer demand fast outpacing supply
Due to the continued shortage of property in Glasgow, competition is rife amongst buyers. Due to the lack of supply and increase in demand, and with both domestic and international buyers vying for the best available properties.
There is potentially a shortfall of over 11,000 homes over the next five years within the city, excluding any historic undersupply enhancing investors rent and capital growth.
For many investors, particularly from overseas, London is the go-to location in the UK for property investment. But it has become an increasingly difficult time for investors to get into the market in the British capital, whilst rocketing prices are seriously eating away at overall returns. The average property price in London is over twice of that in Scotland.
Capital Growth & Demand
Due to the better affordability and the demand, Glasgow offers one of the highest rent yield returns for property in the UK.
That combined with a Guaranteed Rent Scheme that operates in Glasgow for two unique social housing schemes, makes it a very attractive for all types of investors
Not only does this make it more accessible for investors, but a strong rental market will help them to realise strong returns from their initial outlay.