Glasgow Property Eclipses UK Market

Property in Scotland rents fast and appreciates well. The International Property Investment Network (IPIN) reviews how Glasgow and other key Scottish areas can create healthy returns for property investors.

The Scottish housing market has been out-performing that of the UK as a whole for no less than 17 consecutive quarters. According to latest statistics produced by the Nationwide Building Society, Scottish property saw the fastest growth in the UK, rising in value by 1.8% in the final quarter of 2007, and averaging at 14% for the whole year. However, average house prices in Glasgow jumped even further, reaching 15% to £172,000.

The Independent newspaper recently named Scotland as a hotspot for 2008, and it is easy to see why: Despite the continued appreciation of property in the area, Scotland remains the second cheapest place in the UK to buy a home. Likewise, the Royal Institute of Chartered Surveyors stated in its February 2008 report that: “Workloads continue to grow strongly in the Scottish construction sector, while in London and the South-East momentum has slowed markedly.” Martin Ellis, chief economist with Bank of Scotland, explains: “Strong economic conditions, highlighted by high employment levels, have boosted housing demand and driven up prices.”

Scotland’s cities however, do not just offer capital appreciation for property investors. Students are attracted to Scotland by the free tuition and last year saw the smallest number of first time buyers entering the market since 1988. Put the facts in a cocktail shaker and you get a fantastic combination of rental returns while property continues increasing in value each year.

Leading Scottish letting portal, Citylets.co.uk, saw its busiest January ever, with visitor numbers 41% higher than in 2007, explaining: “We expect that strong tenant demand will remain a feature of the first quarter of 2008 and possibly longer if the next interest rate cute fails to boost confidence. Although Scottish property price growth remains positive some would-be-buyers have decided that, for now, they are content to rent.”
But the good news does not stop there. Property in areas like Glasgow, Scotland’s biggest city, took an average of only 29 days to rent. Citylet’s report confirmed that in Q4 2007, not only did volumes of letting increase, but 54% of all properties marketed were rented within a month, and 14% within a one week period! The rental portal goes on to explain how, “Given both higher borrowing costs for landlords and the increase in demand for rental property we expect to see a similar increase in the next quarter.”

Citylets.co.uk concludes: “What seems in little doubt is that landlords and letting agents had a healthy finish to 2007 – and so far a phenomenally busy January. We see no reason why that should abate during the first quarter of 2008.”

Award-winning projects such as GH2O prove to be the best bet for property investors, according to the International Property Investment Network (IPIN).  Situated on the quiet banks of the River Clyde, this residential complex is a highly desirable address for trendy young professionals as it is conveniently positioned between the city centre, retail and leisure areas.

The project is part of the regeneration of Glasgow’s Clydebank area, which will include the creation of a new metropolitan environment consisting of residential, commercial, retail and leisure districts. Some of the projects already completed are: Radisson SAS Hotel, Argyle Street, Glasgow, Telford Drive, Edinburgh and Bewleys Hotel, Glasgow.
According to Gareth Milton, Head of Operations at IPIN, “This stunning addition to Glasgow’s skyline offers a choice of 15 modernistic apartment styles, and the project itself has been designed to ensure that 80% of these units enjoy direct views over the River Clyde. Following our extensive research and due diligence procedures, we believe GH2O offers a combination of great rental potential within a UK city experiencing continued economic growth.”

Please see the Figures Below:

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