The Growth of Private Rentals in GlasgowJuly 28, 2017 2:02 pm
Last year, the growth of private rentals in Glasgow saw a 5% increase on the previous twelve month period and is expected to continue to grow in the next 12 month period. The whole of Scotland saw the fastest year on year increase in rental rates in April last year, with a growth of 1.6% and Glasgow was among the places with the highest rate.
One of the reasons that the market in Glasgow continues to do well is the investors that have joined the buy to let market in the area. The result also means that rents are increasing and landlords are continuing to make profit from their properties, despite recent changes to legislation about tax and other areas introduced by the government.
While the 3% stamp duty rate and changes to the taxation system has seen many buy to let investors pause to see how things go, the market in Scotland continues to do well. The affordability of the properties is another reason it is an attractive area to buy into, even for first time landlords with house prices meaning many landlords can have a mortgage only 75% of the value of the property and therefore are better insulated against market or inflation rate changes.
Finally, after a period of stagnation, the population of Glasgow is once more on the rise and this further increases the demand for properties. In turn, the difficulty that many people have with getting a mortgage mean that more people are turning to private rental houses and renting now accounts for 17% of all properties in the city.