Q1

According to the latest rental indices for 2021 from LandlordZone using data from Belvoir, Q1 of this year revealed that rents fell slightly year-on-year across the UK.

The data shows a minimal fall across all UK regions including Scotland, with the average rent for Q1 sitting at 1% lower than the same period last year.

Given the catastrophic effect of the pandemic, it is surprising that rents have held up.

Q2

In the second quarter of this year, there were more positive results across the country where supply couldn’t keep up with demand. Rents in Q2 rose by 1.25% and there was a slightly bigger year-on-year increase of 1.5%.

Trends

Houses have outperforming flats from a rental and purchasing perspective with the pandemic exacerbating demand across all markets.

Trends do differ across regions and property type with houses in the most demand. In the second quarter of 2020, prices for flats decreased by 16%. Houses performed better, with no falls reported in Q2 this year. Overall, landlords with houses saw rent remain strong throughout the pandemic – and these are no increasing in all regions.

House prices

For landlords with a portfolio, it’s important to understand not only rental income but also what is happening to house prices across the UK. According to data from Walker Fraser Steele and Acadata, the average house price in Scotland hit a fresh high of £211,029 at the end of August 2021. This is a monthly rise of 1.8% which equates to £3,685 since July, and a 12.1% annual rise – with no sign of a let up.

In addition, all 32 Scottish local authorities have reported price rises over the year so far, and that transaction levels in August were at a seven-year high.

House prices from June to July stood at 2.7% and was a six-year high so the latest increase.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

According to research carried out this month, rental demand in urban areas has steadily climbed in all major cities during the third quarter of 2021 as we see a return to office working.

The Barrows and Forrester Rental Demand Index analyses rental listings across the UK, presenting an average demand score for each of the UK’s major cities. By looking at where has the highest number of properties already let it highlights the percentage of all rental listings in the UK.

The analysis presented in the report shows that rental demand averaged 42.9% from July to September (Q3) 2021, an increase of 9.9% compared to April to June (Q2) and 6.8% higher than the same period last year.

Rental demand in Q3

Glasgow has enjoyed the largest quarterly uplift, along with Cardiff, with rental demand rising by an incredible 22.1%. This is followed by Bristol at 21.9% and Edinburgh at 21.5%. There was also a rise in tenant demand by more than 20% from July to September with Cambridge also in the top five at 19.6%.

The cities that make the top 10 in terms of an uplift in demand include Manchester at 14.8%, Newcastle at 11.2%, Southampton at 10.9%, Plymouth at 10.8% and Birmingham at 10.5%. Newport is the only city to have seen a decline in demand in Q3, down -5.2% on the previous quarter.

Annual uplift

In terms of an annual uplift in tenant demand, featuring in the top 10 are Cardiff, Cambridge, Edinburgh, Manchester, Bristol, Glasgow, and Birmingham.

Innes Allan says:

We are seeing indicators across Glasgow that the rental market is picking up at an exceptional rate, after a challenging time for both renters and landlords. During the pandemic, many landlords experienced void periods – especially those in the student rental market which is prominent in the West End – and a decrease in rents in order to secure a tenant. We are pleased to see that there are clear signs of recovery not just in Glasgow but other major cities across the UK as people return to more normal working conditions – which has a positive knock on effect on the wider city. We expect this to continue over the coming months as tenants look to find a new home in time for the festive period and the start of 2022″.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

Zoopla has recently carried out research to find out which property type offers the best value for money – with some areas of the UK costing 12 times more than others.

According to the latest analysis, the average UK property costs £282 per square foot – in London’s Kensington and Chelsea this is an incredible £1,491 while Scotland is far below the average at £160 per square foot.

In terms of property types, the best value for money is a two or three-bedroom house and providing the least value for money is a one or two-bedroom flat. A three-bedroom house costs an average £262 per square foot whereas a one-bedroom flat costs and average £389 per square foot.

The search for more space

During the pandemic and in the 14 months after the property market re-opened after a three month near-shutdown, the search for more space resulted in three and four-bedroom houses being the most in-demand property types. People were looking for an additional bedroom to accommodate working from home as well as more outside space following months of restrictions. The average cost of a three-bedroom detached house has gone up by £25 per square foot, whereas a two-bedroom flat has gone up by £7 per square foot.

Location, location, location

As well as the type of property you are purchasing, the location also determines the price of a property. The best value for money can be seen in the North East at £157 per square foot, with Scotland a close second at £160 per square foot.

The most expensive area, unsurprisingly, is London where the prices are double the national average. This is followed by Cambridge, Brighton and Oxford.

The amount of space you can buy with £5,000 varies from region to region – in Scotland this would buy you 31 square feet whereas the UK average at 18 square feet.

Good news for sellers

If you’re selling a three-bedroom family home, it’s good news as this type of home is most in demand and the value of this type of property is still rising and they are commanding higher values per square foot.

Innes Allan says:

“Although following the pandemic, houses are in exceptionally high demand (with no sign of this slowing down) here in Glasgow’s West End, flats will always be in exceptionally high demand from both property investors wanting to take advantage of the student and professional lettings market, and first-time buyers and second-steppers wanting to live close to the incredible amenities and transport links right on our doorstep. House prices here hold their own, regardless of what’s happening in the wider Glasgow and Central Scottish property market. Whether you’re buying or selling, and want to get advice on the outlook for the Glasgow area, get in touch.”

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

Since the property market re-opened last year, no one could have predicted the impact that the pandemic would have on UK house prices. Here at Caledonia Bureau we have had one of our most buoyant years’ and as a result have opened up Caledonia Bureau Glasgow.

Before we look at Glasgow’s west end, let’s look at what’s happening in Scotland as a whole.

Looking at figures from the Registers of Scotland (RoS) – they reported this week that the average residential property in Scotland now stands at £194,100. Although this is good news for homeowners, for those wanting to get onto the property ladder it’s going to be even more challenging. This figure is an increase of 7% since 2019-2020 and a 25% rise on the 2007 pre-financial crash average of £154,800.

The RoS reported that house prices rose by 5.4% between April and May, compared with an increase of 0.7% in 2020. We’ve noticed that family houses are high on buyers’ wish lists. and figures show that terraced properties showed the largest increase in average price, rising by 13.4% in the year to May 2021 to an average of £145,290. The area that saw the highest price increase was Inverclyde, up 20.2% to an average of £111,911 whereas property in Edinburgh was the most expensive.

Over the last year, there were 95,500 property sales across the Scotland with a steady climb resulting in the highest number of purchases since December 2007. In March the number of house transactions jumped just under 100% on March last year when lockdown was first imposed.

Glasgow – A unique market

Family homes are in particularly high demand as many people look towards a permanent full or part-time home working arrangement and so require an additional bedroom to use as a study. What’s more, with many of us locked down for months at a time since last March, our gardens were our sanctuary. As a result, people have realised the importance of having access to outside space. However, the West End of Glasgow is a unique market – and with professionals and students seeking homes in this vibrant, trendy area and venues once again opening up, apartments are still in high demand.

Prices across Glasgow are the steepest we have seen them in more than 10 years with a sharp rise in March this year. With fewer properties on the market due to Covid restrictions, this has further driven prices up. The market is still catching up with the spike in people looking for homes to accommodate their ‘new normal’ and shift in priorities, along with low mortgage rates, the introduction of the Mortgage Guarantee Scheme and the LBTT break. The result is an incredibly buoyant, sellers’ market.

Mortgage rates remain close to all-time lows but with house prices currently at record all-time highs, it’s even more difficult for prospective first-time-buyers to raise the required deposit.

In Glasgow, we have seen around 80% of properties attracting multiple bidders and premiums of up to 20% over valuations are commonplace. We have also noticed a rise in buyer enquiry levels compared to this period last year, particularly from those looking for family homes close to primary and secondary schools as the pandemic resulted in many families moving to houses that would accommodate home working.

What’s the outlook?

Despite house prices rising, industry experts from RICS don’t believe that the bubble will burst – but the post-pandemic demand will continue to accelerate house prices, albiet at a slower pace going forward. It’s believed that the market will slow down next year but will grow steadily in Glasgow.

Simon Rubinsohn, chief economist at the RICS, believes that while the residential market looks overvalued, “its overvalued for justifiable reasons”. He has suggested that Scotland’s biggest cities compare reasonably favourably with many others across the UK. “What you got at the moment is a high average price to average earning ratio and you got low servicing costs, so if you had high price to average earnings ratio and servicing costs, while mortgages were going up sharply, then you might question if the fundamental support for the housing market is in place.”

He has predicted that interest rates and mortgage servicing costs will remain low for the next 12 months at least. “The key thing is can you find the deposit to put down and actually purchase – then you pay the servicing costs – the deposit is the big issue and the servicing costs are much more manageable than they’ve ever been.”

Innes Allan, Glasgow Partner, Caledonia Bureau

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

When the pandemic started last March, the structure of our working day in the ‘new normal’ changed overnight. All non-essential offices and shops closed and working or ‘Zooming’ at the kitchen table became commonplace.

According to the Office for National Statistics, in April 2020 over 44% of workers were carrying out their role remotely from home. This, as well as all children being home schooled, transformed the day-to-day structure of our lives, especially in how employees engaged with one another.

When the restrictions were lifted in July last year (albeit it temporarily), many people continued to work from home following government advice. The Work Foundation at Lancaster University in collaboration with Newcastle University Business School published a report that delved into remote working. It found that employees valued the flexibility and autonomy that resulted from remote working and that these preferences would dictate our post-pandemic future, whereby hybrid working became the norm. It showed that 89% of those surveyed said they would want to continue to work remotely as restrictions eased. In addition, according to the Office for National Statistics, in April 2021, 85% of workers expected a hybrid model of working for the foreseeable future.

Due to the high number of people working from home, the property market has changed significantly over the last 18 months as people have re-evaluated what’s important to them and what they need from their homes. More space is in high demand to accommodate the high number of people still working from home and, with people refined to their gardens for socialising last year, many people want more outside space. This, coupled with the stamp duty holiday, resulted in a property market boom that no one expected. Family homes with four or more bedrooms are still most in-demand, and with a significant lack of supply, this has further driven up prices.

If you are one of those people who are working from home either permanently or on a hybrid model, how can you ensure you get the most out of your day? Here are some tips:

Start your day as if you were going to the office

It may sound simple, but it’s essential that you get up, get dressed and start your day as if you were going to the office. It may be tempting to stay in pyjamas for the day but having the right mindset from the off is essential. What’s more, you may have to join a Zoom meeting – in which case you won’t want to be seen with unbrushed hair and a pyjama top! Having the right mindset will help you to stay motivated and on top of your daily tasks. It’s also a good idea to consider how you used to start your day – did you read a book on the train, listen to the radio, walk or cycle to work? Try and introduce this into the start of your day so that you aren’t getting straight out of bed and sitting at a desk.

A designated workspace

One of the challenges that homeowners and tenants have experienced is finding the right place to work. It’s important to have a dedicated space rather than to sit with your laptop on the sofa or at the kitchen worktop. This will help you to disconnect from work when your day is finished, otherwise work productivity and your home life could suffer.  There should be a clear separation between home and work so try to designate an area even if you live in a small flat. It doesn’t have to be a separate room, but it should feel separate from the rest of your home even just from 9-5. If this is difficult and you need to work in a living area, make sure you pack everything away at the end of the day and ‘leave’ your workspace.

Keep regular hours

Just as you designate a workspace, be clear about the time you start and finish work. This will not only help you to plan your day, but also to transition back to the office when the time comes. If your role is collaborative, being on the same schedule as your colleagues makes everything easier. If you live with others, this separation is even more important. Talk to your family or housemates to establish boundaries so that you can minimise distractions during the workday. What’s more, having a separate time and space to work will allow you to be more present in your home life.

Stay focused

Distraction is one of the most common challenges facing people who work from home. It’s easy to get distracted but you need to be aware of just how much this happens.  If you take regular breaks during the day, it’s ok to put a wash on or tidy up, but don’t do anything that will require too much time, planning and energy. At present one of the biggest distractions is the news so try not to check what’s happening in the world too much.

Socialise

When offices closed and we all worked from home, many people found themselves cut off from friends, colleagues and family. Eighteen months on, it’s easy to forget that we need to be around others and when you work from home, you can become stuck in a rut. Talk to colleagues throughout the day on text or Zoom as if you were in the office and set time aside to catch up with people during the day.

Looking for more space? Take a look at our properties for sale and register for property alerts. Contact us today if you would like a free property appraisal.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

Glasgow West End Now Open!

For over 30 years Caledonia Bureau has delivered a superior estate agency and letting service helping thousands of clients move home. With an office in Dumbarton and Clydebank, we are now delighted to bring you a new way of selling homes in Glasgow’s thriving, vibrant West End.

The West End is a very unique property market – that’s why we’ve taken a completely different approach to helping people to realise their dreams, alleviate their fears and come up with a strategy that involves just two people – you and Innes. He has worked for some of Glasgow’s leading agencies. Boutique, independent, chain…he’s seen it all. He knows the market, the eateries, the galleries, the hidden gems…he lives here and he loves his city. And because of this experience, he knows what works and what doesn’t.
Innes is your own personal advisor from initial consultation to turning the key in the lock. And if you’re lucky, he’ll even introduce you to Lexi.

We take our responsibility to help maximise the value of your home seriously – and understand that your family, lifestyle, dreams, and financial security may be tied up in this sale. Understanding how much this means to you, Innes will find a buyer who will cherish and care for your home as you did.

Authentic estate agency values, industry best practice, integrity and reliability combined with cutting edge innovation is what makes us different and relevant in today’s busy estate agency marketplace.

A marketing strategy you can rely on

When the time comes for you to sell your home, our strategically driven marketing solutions ensure maximum exposure. Every day our West End team demonstrate intelligence and understanding of this and offer you our unwavering focus.

Photography of your home will be high quality, thoughtful and always professional. Layout plans precise, accurate and easy for buyers to follow. There’s no question video is necessary to showcase your home; ours are in glorious HD and with video now proven to generate higher engagement levels, we will undertake a targeted campaign of digital marketing across our social channels.

Individually and collectively these activities ensure the greatest market exposure and ultimately the best possible financial results for you.

So, whether you are moving across the city, down the road or just around the corner – our approach is refreshingly different. Start your move with Caledonia Bureau Glasgow West End today.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.