Demand for Glasgow properties sees rents hit record highs

New research from property letting portal Citylets, shows the average monthly rent in Glasgow grew by 16% to £972, well above the Scottish average of £896.

Figures also show that the average Time To Let (TTL) – the period a ‘for rent’ sign is displayed at the property – remains at historic low levels of 13 days, in comparison to the Scottish average of 18-25 days across one, two, three and four-bedroom properties.

Thomas Ashdown, managing director of Citylets said: “City living is back. During the pandemic, growth slowed in most cities and accelerated in surrounding areas.

“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns. The appeal of the city lights appears to have endured some extreme disruptions it would seem.

“Despite relentless economic worry and the conflict in Ukraine that will further impact on the cost of living, the market is very busy. People want to get on with life and make decisions now which have been postponed in recent months.”

By postcode, Glasgow’s rental hotspots for one-bedroom properties were G12 (West End) and G13 (Anniesland, Knightswood, Yoker), where TTLs were only seven and eight days respectively. The TTL for two-bedroom properties in G13 was only five days, while the G1 (Merchant City, St Enoch’s) and G4 (Calton, Cowcaddens, Kelvinbridge) postcodes recorded an average of nine days.

The Citylets quarterly report for the first three months of 2022 shows demand for rental properties across Scotland exceeded supply in both rural and urban areas. However, the number of available properties was slightly higher than the historic lows reported in the last quarter of 2021.

Mr Ashdown said: “While there is slightly more supply of properties than there was at the end of last year, it’s not a widespread phenomenon and this is not something that can always be addressed quickly. The consequence of that is, with no sign of demand reducing, rents may continue to rise throughout 2022.

“While it’s reassuring to see that cities are coming back to life, rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”

Letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.

Wendy Gallagher, of Glasgow’s One Stop Properties said: “While some landlords have continued to leave the market, our existing landlords have been rewarded with unprecedented increases in rent. We have also seen an influx of new landlords with an appetite to invest in the property sector, coming to the rental market with a long-term investment vision.

“Whereas the increased rents are promising, we need to be considerate of the impact of the rising cost of living for tenants (energy, fuel, food, etc.). As the Covid tenancy restrictions, which were implemented by the Scottish Government, come to an end there is positivity for a fairer outlook for landlords.”

The figures highlighted in the quarterly report show that available properties were being snapped up at high speeds in Glasgow, with 50% let within one week and 87% taking less than a month to let.

Brian Gilmour, of independent letting agent Indigo Square, said: “The Glasgow market remains exceptionally buoyant, with demand outstripping supply, continuing the upward pressures on rents.

“Stock availability continues to be a challenge, with tenants remaining in their properties longer. The Covid changes to legislation put in place to minimise evictions were still in place through most of the last quarter but came to an end and it will be interesting to see if this, allied to the cost of living crisis, has any impact upon the market in the coming months.”

Citylets operate a residential lettings site with over 50,000 properties per year from over 400 local agents.