scottish property news
 

Glasgow Rental Market hits the heights

by Jonathan Rennie© Evening Times
Originally published: 08.07.2008

The city's residential rental market is in its healthiest state in years.

Occupancy in Glasgow has been at almost 100% this year - and property management firms are battling one another for every available home.

That's the view of Peter Grant, managing director of Grant Management - one of the city's biggest property management firms.

The company, which looks after 1900 homes in Britain, says Glasgow is witnessing "unprecedented demand" for rental property.

And the impact is resulting in healthier returns for landlords or those who can afford to take on a buy-to-let.

Peter said: "Demand is exceeding supply in Glasgow.

"Since January our business has been experiencing 100% occupancy to the extent our biggest headache is now finding property, not letting it out.

"You can see it in the newspapers or in adverts - management companies are actively looking for more homes to let."

This demand has become more acute as the slump in the mortgage market continues. More people are taking their time before commiting to purchasing so are moving into rental properties.

In addition, says Peter, some homeowners are deciding to rent out rather than sell.

Peter said: "If you can afford to buy a property simply for rental then it makes a lot of sense.

"It is a buyer's market and the yields are strong. In Scotland the increases have worked out at around 5% to 6% year upon year."

The most expensive rental in the city centre is at River Heights on Lancefield Quay, where a three-bedroom penthouse costs £2000 a month.

At Glasgow Harbour, some rents have risen by up to £300 over the last 12 months, and demand for student accommodation in the city is still the highest outside of London.

Peter said: "I think Glasgow's rental market will remain healthy for some time to come."