Cheaper mid-market rent homes are in high demand in parts of Glasgow as private letting costs soar.

Cheaper mid-market rent homes costing about £591 a month for two bedrooms are in high demand in parts of Glasgow as private letting costs soar.

Much more affordable than private letting but more expensive than social housing, a total of about 2,250 mid market rent (MMR) homes have been built in Glasgow since 2011.

Figures from City Lets earlier this year show that private rents stood at about £1,190 per month for two bedrooms in Glasgow. Social rent costs about £375.

Mid market rent properties are provided by housing associations and are suitable for families earning between £20,000 and £40,000.

A council statement provided during a meeting said: “Recent developments at the Meat-market and Govan Water Row have recorded significantly high demand.

“Feedback from registered social landlord partners indicates that demand largely comprises younger households seeking good quality homes, with relative security of tenure and at a more affordable level than compared to private renting.”

It added: “Rising private sector rents and cost of living increases have increased housing affordability pressures for renters in Glasgow. In terms of addressing Glasgow’s housing pressures, mid market rent offers an important intermediate tenure choice that is more affordable for households that are struggling within the private rented sector but may not be high priority for social rent.”

The council information was released following a question from Labour councillor Kieran Turner asking whether midmarket rent helps with the “housing crisis” during the most recent economy, housing, transport and regeneration city policy committee.

Councillor Linda Pike, also Labour, asked if mid-market rents are being used as a stop gap or as a longer term option?”

The council said: “MMR provides affordable homes and promotes tenure diversification. It is more efficient from a grant-funding perspective, as it attracts higher rates of private finance contribution from registered social landlords (RSL).

“From a tenant’s perspective it allows those who would not have access to social rent properties to benefit from being an RSL tenant, whilst paying lower rents than the private rented sector.

“Tenants also benefit from better management and maintenance arrangements than they would usually find in the private rental sector, and in modern, spacious, energy-efficient homes.”

It added: “It is envisaged that MMR will remain an important part of the affordable housing supply programme, though as noted in Glasgow’s Housing Strategy it is proposed that 80 per cent of future development should be for social rent.”

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