Several factors indicate that change is afoot across Scotland’s rental market, and Glasgow may well feel the effects sooner rather than later.
For a long time, Glasgow’s rental sector has stood apart from its counterparts Edinburgh and Aberdeen. Rents were well under those found elsewhere and demand met with ample supply, giving renters in Glasgow an easier time than in Scotland’s other key cities, with flats being let far slower and costing far less.
Glasgow’s West End has always been the residential area that bucks this trend; Lettingweb data show West End two-bed flats cost £812 this summer; more expensive than all but the most affluent areas across Scotland, even in Edinburgh. The average cost of two-bed flats across Glasgow for the same period was £609, over £200 less per month than those in the West End.
Signs of change?
Until now, there has been little sign of anything changing in the Glasgow private rental sector. Whilst rents in Glasgow have been growing at 3% for two-bedroom flats it is a growth that is roughly in line with Scotland as a whole. But it appears that is set to change. Turbulence in Scotland’s property market is causing an alarming split between the number of people looking for a flat to rent and the stock that’s coming onto the market.
In July, supply was overtaken by demand in Glasgow for the first time this year, and it is a trend that has become clearer in the months since. That means falling stock in Glasgow for three straight months, and a gap between supply and demand that is bigger than it has been since the credit crunch. These are warning signs that the rental market in Glasgow may be in for a tough time unless something is done to rectify the disparity between supply and demand.
Glasgow rental stats
According to Lettingweb:
- There were 21.8% more properties let in August than brought onto the market, and 48.3% more in September.
- Rents rose 1% for one-bed flats, 3% for two-bed flats and 2.7% for three-bed flats this summer compared to last.
- Average rents for one-bed flats were £469 for Glasgow this summer, compared to £545 in the West End.
- Average rents for two-bed flats were £609 for Glasgow this summer, compared to £812 in the West End.
- Average rents for three-bed flats were £808 for Glasgow this summer, compared to £1,119 in the West End.
For full insight into the lettings market across Scotland, download Lettingweb’s Lettingstats Report – October Edition here.
Rent per bedroom for 2-bed flats, Glasgow