Biggest rental hotspots in Glasgow revealed as prices continue to soar

There has been a huge spike in rent prices in Glasgow because of a shortage of properties, new research has found.

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Despite monthly rents increasing by up to 15 per cent in Glasgow, demand is so high that the time properties are on the market has dropped to just over a week on average.

Latest research from letting portal Citylets has revealed that the average monthly rent in Glasgow’s private rental sector rose to £974 in the last three months of 2021.

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How long are properties on the market for?

Meanwhile, the firm’s quarterly report also showed that properties were being snapped up at record speeds, with 60 per cent of properties let within one week and 94 per cent taking only one month to be let.

Rents in Glasgow have been going up.

This compared to Scotland-wide average monthly rents of £869, up 5.2 per cent in the same quarter, with 40 per cent of properties rented within one week and 83 per cent secured within a month.

Where are the biggest rental hotspots in Glasgow?

By postcode, Glasgow’s rental hotspots for one-bedroom properties were G3 (Woodlands, Finnieston, Lancefield, Yorkhill) and G11 (Broomhill, Partick, Kelvinhall) where TTLs were only six days. Meanwhile TTLs for two bedroom properties in G1 (Merchant City, St Enoch’s) and G31 (Dennistoun, East End, Parkhead) was also an average of only six days.

However, it is feared that many landlords are planning to sell up while the property sales market is buoyant, aiming to avoid a wave of greater regulation expected in the market. That will further constrict the supply of available homes.

Fewer properties available

Thomas Ashdown, managing director of Citylets, revealed that the numbers of available properties being advertised across Scotland was down two thirds on the same period just three years earlier.

He added: “High levels of rental activity continued to the end of 2021, sending stock levels down to record lows across Scotland. Competition for property to rent was frenzied in many locations. The average stock levels over Q4 2021 were just 32 per cent compared to the same quarter in 2018.”

Increased competition for properties of all sizes also meant rental homes were on the market for much shorter times. The Citylets report showed that Time to Let (TTL) averaged just 16-19 days across all property sizes.

In fact, in Glasgow the average TTL was just nine days, a sharp decline from 20 days the previous year, echoing letting experts concerns around a lack of stock against a background of rent increases.

Ninety-seven percent of one bedroom properties in Glasgow found new tenants within one month, with average rents reaching £739 (up 14.8 per cent), while two bed units achieved average rentals of £982, up 10.8 per cent and 94 per cent were rented within one month.

Sell up

Letting agents are concerned that retaining the existing size of the Private Rented Sector (PRS) will be even more challenging, with landlords tempted to sell up.

Brian Gilmour, of independent letting agent Indigo Square in Glasgow, said: “The biggest issue affecting the Glasgow rental market has been availability of stock. House price rises have allowed many landlords to ‘cash-in’ and take profit out of their properties, however, these sold properties have not been replaced in sufficient numbers and we have seen a shrinkage in the PRS.

“This shortage has been compounded by the impact of Covid and the lack of people moving, plus restrictions on evictions limiting abilities of landlords to move on tenants. For some time, the PRS has been an essential part of Scotland’s housing tenure but reduced supply and continued high demand has seen rents rise and time to let drop dramatically.”

Shortage of properties

Colin MacMillan, managing director of Glasgow Property Letting, said: “The PRS in Glasgow is suffering from an acute shortage of properties which is leading to hyper-inflated rental values being achieved throughout the city.

“Post COP26 there is still exceptionally high demand across all sectors and lack of supply meaning that many prospective tenants are not going to be able to choose their locations and may be forced into accepting properties in areas outwith their chosen criteria just to secure accommodation.”