Glasgow’s properties have hit a record high in recent months with the latest House Price Index seeing values for May in the city surpass the previous high from 2007.
Indeed, the average home in Glasgow will now cost £146,286 with demand for buying a property in the city remaining exceptionally high. With properties in the city returning some of the largest yields in the UK, and the price of property rising by £15,000 in twelve months, why is the Glasgow property continuing to grow?
The country’s new Land and Buildings Transaction Tax (LBTT) has now come into effect. Although many experts feared that this would lead to a crash in the value of properties across Scotland, Glasgow has remained unaffected by the introduction of the replacement for stamp duty. LBBT saw graduated rates of tax applied to transactions for properties at different value levels. However, transactions on properties valued below £145,000 are exempt from the new tax regulations.
Whilst areas like Edinburgh and Aberdeen, with higher average property prices have been affected, with The Edinburgh Solicitors’ Property Centre (ESPC) showing that a half percent drop in property value from the previous year, those wishing to invest in Glasgow have remained relatively unaffected.
The average property value in Glasgow falls below the current LBBT tax threshold meaning that those with properties in the area, and perhaps more importantly, those that wish to invest are able to do so without any form of tax. Despite the new tax brought in, Scottish properties have increased in value almost double the rate of the rest of the UK, with much of the growth down to Glasgow’s strong property values.
Although many experts predicted that the housing market would suffer as a result of the Scottish government introducing a new tax, new housing, regenerated areas and an improved reputation has led to demand for property in Glasgow still being exceptionally high with properties in Glasgow accounting for around 12.5% of the total number of properties sold in Scotland. It could be argued that based on the current evidence Glasgow is one of the UK’s investment hotspots in terms of property, with a demand for all types of property aiding the market.
Student property in the city generates higher yields than many other cities and with three universities and multiple colleges, the property market will be boosted further with more students coming to the city to live and study. Figures from renting figures showed that between 2010-2014, rent growth in Glasgow was over 11%. If this trend is continuing into 2015 then it could allow the Glasgow market to continue its remarkable growth.
Buying a property in Glasgow can prove to be a worthwhile investment with the city experiencing much growth in terms of property in the last few years. With new properties being developed, popular, in-demand areas such as the West End and a Commonwealth Legacy regenerating the area, our team of solicitors or our series of “Buying a Property in Glasgow” guides could prove useful in aiding you in purchasing a property in the city.
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