Demand for property in Glasgow is driving rents to record highs

The cost of renting a property in Glasgow has hit a record high, according to new figures.

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

The figures also show that the average Time To Let (TTL) – the length of time a “For Rent” sign is posted on the property – remains at a historically low level of 13 days, compared to the Scottish average of 18 up to 25 days over a period. Two, three and four room apartments.

Citylets chief executive Thomas Ashdown said: “City life is back. During the pandemic, growth slowed in most cities and accelerated in surrounding areas.

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“Now people are back to the office, at least to some extent, and seem confident there will be no more full lockdowns. The attraction of the city lights seems to have suffered some extreme disruption, it seems.

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Rents in Glasgow have reached record highs.

“Despite unrelenting economic concerns and the conflict in Ukraine which will continue to impact the cost of living, the market is very busy. People want to move on and make decisions now that have been put off for the past few months.”

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

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

Mr Ashdown said: “Although the supply of property is slightly greater than at the end of last year, this is not a widespread phenomenon and it cannot always be addressed quickly. As a result, rents could continue to rise throughout 2022 with no sign of a drop in demand.

“While it is reassuring to see cities coming back to life, given the ongoing cost of living crisis, rent increases of this magnitude are likely to prove problematic for many. This is not an optional purchase – you must have a place to call home. More choice in the industry and even more choice in housing would obviously help.”

Landlords remain concerned about the supply of available property in the private rental sector, with many landlords continuing to sell while the market is buoyant – or to avoid the threat of increased regulation and the costs it entails.

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

“While increased rents are promising, we need to consider the impact of rising living costs for tenants (energy, fuel, groceries, etc.). As the Covid rental restrictions introduced by the Scottish Government come to an end, there are positive prospects of a fairer outlook for landlords.”

Figures highlighted in the quarterly report show that available properties in Glasgow were being let at a rapid rate, with 50% being let within a week and 87% being let in less than a month.

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

“Inventory availability continues to be a challenge as tenants stay longer in their properties. The Covid changes to legislation to minimize evictions were still in place for most of the last quarter but were coming to an end and it will be interesting to see if this, combined with the cost of living crisis, has any impact on the market in the following months.”

Citylets operates a home rental site with over 50,000 properties per year from over 400 local agents.

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