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Despite tepid enthusiasm about the rental property market throughout the UK over the next five years, the outlook for Scotland's two biggest cities looks very good. Recent research suggests that both housing prices and rents in Glasgow and Edinburgh will outpace the rest of the UK through to 2022.<br>
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Rental Property Expected to Do Well in Glasgow and Edinburgh Despite tepid enthusiasm about the rental property market throughout the UK over the next five years, the outlook for Scotland's two biggest cities looks very good. Recent research suggests that both housing prices and rents in Glasgow and Edinburgh will outpace the rest of the UK through to 2022. Property Wire reports that research from JLL suggests rental growth in Edinburgh of 20.5% over the next five years while growth in Glasgow will come in at just over 18%. Growth in housing prices for both cities is estimated at 23.4% and 15.4% respectively. If those estimates prove to be correct, now could be a very good time to get involved in buy- to-let investments in Glasgow and Edinburgh. Both cities have a lot to offer in terms of property development and city centre rentals. In fact, Property Wire and JLL are especially enthusiastic about city centre opportunities. Fewer Worries in Scotland Major city centres tend to be adversely affected during economic downturns because of the perceived instability of the rental market. But as we observed in the previous two downturns, city centres were the first to start rebounding when property prices and rents began increasing. Why is that important here? Because property experts suspect that England's housing market could drop off if the UK suffers a hard exit from the EU. A hard exit is not expected to have a significant impact on Scotland for a number of different reasons. We will not get into those reasons here, but the JLL research seems to indicate city centres in Glasgow and Edinburgh would do just fine even if London, Manchester and other English markets decline. Here in Scotland, land for new builds is at a premium. Builders are moving outside cities for many of their new projects as space in city centres gets harder to come by. That may sound like a bad thing for property investors, but consider this: a city centre with high occupancy rates is one where renters want to live. So as properties are snapped up by investors, it
means higher rental rates and even more demand among renters who want to live in up- and-coming locations. We Can Be Your Sourcing Partner There is obviously no way to know if the JLL estimates will prove correct short of waiting it out. That said, property investors would be foolish to ignore the research without doing some investigating on their own. Here at Domino Estates, we are keeping an eye on the investment market in Glasgow. We want to make sure we're always offering the best investment opportunities we can find for our clients. If you've been thinking of purchasing rental property in Glasgow, give us a call. We would be happy to explain how we can help along with giving you an idea of the kinds of properties we source for our clients. We can be your sourcing partner by helping you find desirable properties with excellent potential.
