Where are the Biggest Rises in Rents?12 Jul 2017
Where are we seeing the biggest rises in rents in the first half of 2017?
The private rental market in certain areas in Glasgow are now delivering better returns than many traditional buy to let hotspots in the rest of the UK. If we look at the Glasgow market as a whole over past 2 to 3 years rents have remained static across the board however specific postcodes have seen higher than average rent increase according to our figures, and in general these areas are the ones closest to the city center. Why? A rise in the number of foreign student, a more transient workforce and people renting for longer…So what areas have seen these increases?
Graph 1 shows the average rent we achieve for a number of postal code areas throughout Glasgow – as you can see rents have risen across these postcodes over the past 3 years however where are we seeing the biggest proportional increases?
The areas seeing the highest rent increases are Charing X and Finneston, Maryhill / Kelvinbridge and North Kelvinside, Dennistoun and Ibrox / Shieldhall areas, but big jumps in property prices in some of these areas may have made these area a little less attractive from a rental yield point of view!
For example, if an investor is mainly focused on yield, Charing Cross/ Finneston will probably not offer the best yield figures as its very competitive to get a property there at the moment, but in terms of demand as you can see hotspots remain G3, G31, G1, G51, G20 and G11.