Is Glasgow a Buy-to-Let Hotspot?

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Is Glasgow a Buy-to-Let Hotspot?
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Many property investors are looking at Glasgow as the next big investment opportunity. And once you take a look at the city, it’s very easy to see why. As one of Scotland’s biggest cities, Glasgow has a massive young population with many students in need of accommodation.

This is why buy-to-let properties are so popular in Glasgow. For many investors, Glasgow presents the perfect opportunity to buy properties and immediately rent them out to tenants. With an endless stream of young professionals and students in the city, it’s very easy to find tenants for the property, as long as you purchase it in the right area.

In this article, we’re looking at Glasgow’s potential as a buy-to-let hotspot. Below, we explain the potential of buy-to-let properties in Glasgow, examining the city’s rental market, as well as looking at a few great areas for investors looking to pick up buy-to-let properties in the near future.

Should you buy-to-let in Glasgow?

If you’re looking to invest in property in the UK, looking at major cities outside of England is a great way to get more value for your money.  Currently, the average property price in Glasgow is £200,000. In comparison, UK property prices were at an average of £295,000 in November 2022. 

On top of that, finding tenants for rental properties in Glasgow is easy. With a budding young population and a constant stream of students moving to the city, there is a definite need for rental units. So to answer the question, yes, if you have the resources, jumping on the buy-to-let market in Glasgow right now is a great idea.

What goes the Glasgow rental market look like?

Currently, the Glasgow rental market holds a lot of opportunities for investors. The city has the second-highest rental demand in the entire UK. In fact, some studies show that for every 100 rental units in Glasgow, there are 998 prospective renters. In other words, finding a tenant pretty much as soon as your listing goes live won’t be a challenge at all.

On top of that, the city offers a great rental yield for investors. On average, properties in Glasgow have a rental yield of between 5%-15%. This is considerably higher than the UK average, which is 4.71%. So, the average Glasgow investor may earn a higher rental yield than other UK areas. That said, the property market in Glasgow varies quite a lot, so when buying a property, make sure you’re buying it in a good location.

All in all, the Glasgow rental market is very attractive. But to make the most out of your investment, consider putting your money on a property in a central location that is of highest interest. In the section below, we will go over some of the main areas you should look at purchasing your next buy-to-let investment property in Glasgow.

To get the highest rental yield, you want to buy a property in the areas of Glasgow that have the most potential. Following our research, the areas you want to pay the most attention to include:

The West End (G11)

Glasgow’s west end is arguably one of the most popular residential areas in the city. This area is filled with young professionals, families, and students, so you can find various types of buy-to-let properties in the area. Whether you want to buy a small flat to rent out to students or a fully detached home to rent out to a family, the West End has got you covered.

This is one of the more expensive areas in Glasgow, so be prepared to shell out a bit more money than usual. In comparison to Glasgow’s average property price of £200,000, the average property in The West End will set you back around £253,000.

Cardonald, Mosspark, and Penilee (G52)

The G52 postcode is another great area for investors looking for great buy-to-let opportunities. The area is packed with competitively priced buy-to-let properties, making it a great place to get a decent ROI.

The average rental yield in the area is at 8.71%, which is much higher than the UK average. On top of that, it has various transport links to the city centre, making it a great choice for any renter looking to live in Glasgow. As far as the average property price in the area is concerned, it is currently sitting at £137,785.

Bearsden and Milngavie (G61/62)

Bearsden and Milngavie are some of the most popular areas for families in Glasgow. This postcode is near many great schools and is filled with things to do. As a result, it’s a popular hot spot for families looking to raise their children.

If you decide to invest in a buy-to-let property in the area, you can expect the average property to set you back around £297,556. And yes, while the G61/G62 postcodes are relatively more expensive than anywhere else in Glasgow, the investment is totally worth it. And should you decide to sell your tenanted property in the future, finding a buyer won’t be hard at all.

Shettleston, Sandyhills, Carntyne (G32)

The G32 postcode is one of the most popular buy-to-let areas in Glasgow. The primary reason for this is that properties in this area don’t cost as much compared to other areas in Glasgow. This means investors can get into the market with less capital while still experiencing fairly decent rental yields. The average property price in all three areas above is currently just £108,902, which is almost half of the average in the entire city of Glasgow.

If you want a sure market when renting out your property, it might be best to focus on student accommodation. Glasgow is full of schools and students, so there will always be people looking for a place to rent in the area. Some of the primary areas students look to rent properties in include:

  • Hillhead
  • Finnieston
  • The West End
  • G32 postcode

What do students look for in accommodation?

Before making the jump and buying a student buy-to-let property, it’s important to understand your market and their needs. Students, unlike families or young professionals look for very particular things in their accommodation, such as:

  • Distance from their school/college/university
  • Transport links nearby
  • Price
  • Distance from clubs and other social areas

Without a doubt, Glasgow is a buy-to-let hotspot that has attracted the attention of many investors looking to profit from the opportunity. With property prices way below the UK average, investors can buy up a significant number of properties without having to spend millions of pounds.

And the best thing about Glasgow is that the rental yield in some areas is higher than the UK average by a long mile. So if you consider buying a buy-to-let property, it’s definitely worth it. Just make sure to do your research beforehand to make the most out of your investment.

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