Rental Demand Hits High
Newly published research by ARLA reflects the experiences of most agents and prospective tenants by reporting that the number of tenants seeking rental properties has reached an 8 year high.
Berisfords have witnessed an unprecedented demand for city centre rental properties in Glasgow over the last 8 weeks. This appears to be partially caused by the usual seasonal influx of students and staff from Universities and City centre colleges but also due to the number of prospective first time buyers who cannot afford the deposit required to buy a property.
This is being exacerbated by the drop in the number of rental properties being advertised for sale and the lack of new build properties being built by developers.
S Berisford from Berisfords says, “The perceived drop in average house being reported in the press from both the Halifax and RICS may actually present a fantastic opportunity for Glasgow property investors. Whilst the sales market remains stagnant particularly in the outlying regions of Glasgow, city centre properties remain in demand from investors as they can now achieve a good yield of 6-7%. If the availability of new build housing stock continues to shrink and the number of prospective renters continues to grow then this can only drive rental prices upwards.”
Stuart Law of Assetz, a property investment company, is equally bullish on the future rental demand of city centre properties and is of the opinion that prices will continue to rise for the next 10 years. Law points out that as banks will not lend for either the construction or for the mortgage of new build properties in City Centre locations such as Glasgow, very few new build properties will come to the market.
To take advantage of this window of opportunity Berisfords are offering existing landlord clients a service of finding suitable rental properties within the Greater Glasgow area. S Berisford from Berisfords says “Whether you are looking for yield, long term capital appreciation, discount to RICS valuation or for any combination of the aforementioned, Glasgow has many opportunities at present to satisfy the property investor.”
Please contact Berisfords on 0141 582 1230 if you wish to discuss our property finders service in greater detail and take advantage of this great window of opportunity.