With a growing population of over 630,000 people and lower-than-average property prices, Glasgow has become one of the UK’s hot spots for property investors. And if you happen to be one of them, chances are you’re wondering where the best place to buy a rental property is so you can get the highest rental yield.
If the rental yield in Glasgow is a topic of interest for you, keep on reading. Over the next 5-10 minutes, we’re going to go over the following:
- What is considered a good rental yield in Glasgow
- What the average rental yield in Glasgow is right now
- What are the up-and-coming areas in Glasgow
- Which areas have the best rental yield in Glasgow
But before we cover the topics above, let’s first take a closer look at why you should invest in Glasgow, whether buy-to-let is worth it in Glasgow right now, and if now is a good time to buy a rental property in Scotland’s fastest-growing city.
Why invest in Glasgow?
There are many reasons why you should invest in a property in Glasgow. The two biggest reasons are that Glasgow is a growing city with no signs of slowing down and the property prices average at around £200,000. This is almost £100,000 less than what the average property in the UK costs right now.
Is Buy-To-Let worth it in Glasgow?
Most landlords in Glasgow have profited nicely from their buy-to-let properties over the last decade. And as the city grows more and more, so does the demand for properties, which will inevitably bump up rental prices.
So, if you have the money to invest in a buy-to-let property right now and you fully understand what you’re getting yourself into, then yes, buy-to-let investments are definitely worth it in Glasgow.
Is it a good time to buy a flat in Glasgow?
Over the last several years, property prices across Glasgow have increased dramatically (as has been the case throughout the UK). So, if you’re looking to buy a property right now, chances are that you’ll be paying more than you would have if you were to buy that same property just 3 years ago.
However, as Glasgow grows more and more, so will the prices of properties in the city. So, if you’re willing to pay more for a property than you would have a few years ago with the goal of cashing out for profit in the years to come, buying a property in Glasgow right now is not a bad idea.
What is a good rental yield in Glasgow?
According to recent data from Zoopla, Scotland (and Glasgow in particular) offers one of the best rental yields out of all UK regions. Good rental yield across the UK is considered around 6%. As far as Glasgow is concerned, a good rental yield is considered around 8%.
The reason for the higher-than-average rental yield in Glasgow is that property prices are still relatively low compared to the rest of the UK, while rental prices are generally quite high.
What is the average rental yield in Glasgow?
The average rental yield across the entire city of Glasgow is 5.65%. While that may seem quite low, Glasgow has the best average rental yield across the UK. In some areas of Glasgow (which we’ll touch upon in a moment), the rental yield is as high as 14%, which is unheard of, especially for major cities in the UK.
What are the up-and-coming areas in Glasgow?
There are quite a few up-and-coming areas in Glasgow that buy-to-let investors should definitely pay close attention to. They include:
The area of Finnieston has undergone significant transformation over the last several years. And as a result of that, it is often cited as Glasgow’s trendiest neighbourhood.
It’s best known for its mix of residential and commercial developments (which offer great job opportunities) and a vibrant food and entertainment scene. If you’re looking to pick up a property that is almost guaranteed to appreciate in value over the next decade, Finnieston is a decent area to consider.
Situated in the West End, Patrick, too, has undergone significant improvements over the last several years. Its close proximity to the city centre, excellent transportation links, and modern housing available at a fraction of the cost compared to the rest of the UK have made it particularly attractive for people who are looking to move to Glasgow on a permanent basis.
Best known for its diverse community, Shawlands has become a trendy area for living and working, especially amongst the younger population. Its close proximity to the city centre, great transportation links, and plenty of things to do have made Shawlands one of Glasgow’s best up-and-coming areas.
Where to get the best rental yields in Glasgow:
If you want to get the best rental yield in Glasgow, forget what previous knowledge you have of Glasgow and pay close attention to the following areas:
Over the last 12 months, properties in Easterhouse and the G34 postcode in general sold for an average of £63,950. This is 3x less than the average for Glasgow, and almost 5 times less than the average for the whole of the UK.
With rental prices averaging at around £819 per month, Easterhouse boasts the highest rental yield out of any other area in Glasgow. If you’re interested in what the rental yield is in the area, just last year, it was 14%, which is unheard of for a major city.
Situated in the southern part of Glasgow, Castlemilk is the second most popular area for buy-to-let investors over the last several years. According to data, the area has an average rental yield of 11%, which is higher than most areas not only in Glasgow but across the UK.
The average property price here is £151,064, which is around £50,000 less than the average for Glasgow and over £150,000 less than the UK average. The low property prices in comparison to the average price of rental properties in the area make it the perfect place for investors to buy properties for sale and turn them into rentals.
With an average property price of £115,143 and average rent costing at around £790 p/m, Milton is the third best area in Glasgow for investing in buy-to-let properties. The average rental yield in the area is currently at around 10.8%, making it a gold mine of a place for property investors looking to buy rental properties in the G22 postcode.
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