Glasgow’s neighbourhoods continue to dominate the affordable end of the city rental market, according to the latest research from Scotland’s leading rental portal Citylets.
Figures for Q4 2011 show that of the ten least expensive areas to rent in Scotland eight are in or around Glasgow with Govan & Ibrox being the cheapest area to rent, with an average monthly 2-bed rent at £432 a month – a fall of 0.9% since Q4 2010.
Local areas in Aberdeen and Edinburgh predominate Scotland’s top ten list of most expensive rental areas. Only one Glasgow neighbourhood made it in to the top ten list, with the average rent for a two bed flat in the Park and Woodlands area standing at £795, a rise of 3.7% compared to the same time last year.
The rental figures were revealed after Citylets collated average rent levels in Scotland during the fourth quarter of 2011 as part of its quarterly data report, which is acknowledged as the most comprehensive research into the private rental sector.
Dan Cookson, Senior Analyst for the Citylets network which includes major partner brands such as Findaproperty, S1homes and Primelocation, admits that although the same areas tend to make the list, most neighbourhoods in cities across Scotland are seeing steady increase in rents.
He said: “It’s interesting to see that neighbourhoods in Glasgow remain some of the cheapest to rent in Scotland. This kind of result shows that despite the increased demand for private rental property it is still a very competitive market. However with Park and Woodlands amongst the top ten most expensive areas to rent it shows that tenants are still willing to pay good prices to rent in what is perceived as a desirable area.
“It is no surprise that Aberdeen and Edinburgh’s West End areas are continuing to top the list. There is always a clear demand for properties in these areas and tenants may not always consider price when choosing these types of places to rent.
“It is good to see that while urban rents have increased gradually over the year there are still areas that can offer value for the tenant in each city. This is important as it is evident that the ‘generation rent’ trend continues with many people not being able to afford a deposit for their first step on to the property ladder.
“Affordability is clearly important to many people when choosing rents. However it is not straightforward to say that people are purely price driven, many are driven by location and consider this as the deciding factor.
Aberdeen’s West End is the most expensive area in the country to rent, with the average monthly rent for a 2-bed flat currently stands at £972, compared with the national average 2-bed rent of £626. Following closely behind was Edinburgh’s New Town (average monthly 2-bed rent £946) and the capital’s West End (average monthly 2-bed rent £889).
Aside from Glasgow, other low rental areas in Scotland include Bo’ness (average monthly 2-bed rent £436) and Falkirk (average monthly 2-bed rent £464).
The ten most expensive areas in Scotland in terms of rent levels are:
- West End (Aberdeen) – £972
- New Town (Edinburgh) – £946
- West End (Edinburgh) – £889
- Hillside and Calton (Edinburgh) – £873
- Grange (Edinburgh)-£871
- Cornhill and Kittybrewster (Aberdeen) – £835
- Holbun & Ferryhill (Aberdeen) – £813
- Bieldside, Cults & Peterculter (Aberdeen)-£798
- Park & Woodlands (Glasgow) – £795
- Bruntsfield (Edinburgh) – £792
(All values indicate average monthly rent for a 2-bed flat)
The ten least expensive areas for monthly rents are:
- Govan & Ibrox (Glasgow) – £432
- Bo’ness – £436
- Clydebank (Glasgow) – £445
- Paisley (Glasgow) – £455
- Johnstone (Glasgow) – £461
- Parkhead & Tollcross (Glasgow)- £462
- Falkirk – £464
- Shettleston & Carntyne (Glasgow) – £475
- Royston & Springburn (Glasgow) – £477
- Mount Vernon & Uddingston (Glasgow) – £479
(All values indicate average monthly rent for a 2-bed flat)
www.citylets.co.uk was launched in 1999 and is Scotland’s most successful lettings portal. Its quarterly report is the country’s only detailed and independent barometer of the rental market, based on over 50,000 annual lettings from more than 300 agents. It is now a respected tool among investors, landlords and letting agencies.
The next Citylets quarterly data report, showing the rental figures for Scotland during the first quarter of 2012, will be published in April.
Glasgow-based 2gether Specialist Contracts, which offers building refurbishment and industrial maintenance services, has launched a dilapidations service to meet an anticipated rise in demand for the restoration of derelict premises as the recovery of the commercial property market begins to gather pace.
Formed last year from the contracting base provided by parent and sister companies Roofcare & Maintenance and 2gether Property Maintenance, the 2gether Specialist Contracts offering takes the experience of its existing management team and packages it in a way that it can now provide all costing, management and undertake all operations of dilapidations, refurbishments or large scale maintenance projects.
Stuart McGhee, Manager, 2gether Specialist Contracts, said: “Whereas some landlords have been reluctant to invest in upgrading commercial properties throughout the recession when it was perceived that prospective tenants were hard to come by, as the recovery gathers pace there is welcome evidence starting to emerge of a renewed demand for a dilapidations service to bring vacant properties up to standard for companies on the look-out for new premises.
“Our experience enables us to deliver a dilapidations service to companies wanting to limit their liabilities by either appointing us to deliver a planned schedule of works or a cost-effective solution to the level of repairs with an expiring lease.”
2gether Specialist Contracts’ management team comprises: Craig McColligan, former director with RMS (Retail Maintenance Services) which was sold to Rok Plc seven years ago for £7m; Allyn Pratt, former director at Rennie Roofcare and founder of Roofcare & Maintenance and Stuart McGhee, former surveyor/estimator at MITIE Property Services.
Clients include local authorities, national retail groups, main contractors and prominent building surveyors and it delivers projects in industrial parks, shopping centres, government buildings and the healthcare sector.
Photo shows Stuart McGhee and Allyn Pratt
Whilst the sunshine state property market has suffered as a result of the global recession with prices tumbling by as much as 50%, experts are predicting that the market has hit rock bottom and could provide an the opportunity for growth.
Unlike other parts of the world, Orlando has burgeoning business and academic sectors, attracting high numbers of domestic visitors to the area, as well as overseas tourists, providing a lucrative rental market.
Recognising this opportunity Ian, whose company, Caledonian Management has provided investment opportunities in the Middle East, and Donald Paterson, who has been advising clients on overseas property for over 15 years, have set up Map Central Florida Property Investments to launch an investment fund investing in Florida property.
Ian Russell said, “You can buy cheap property anywhere in the world at the moment but how an area manages its return to recovery is important. Florida is the second largest university state in America. It is a strong conference destination because of the facilities it offers and has the obvious tourist attractions and theme parks. As a result it has a huge pipeline of people wanting to rent properties who are not interested in buying.
“America is three to four years ahead of us economically and repossessions are expected to reach an all time high this year. All the signs indicate that property prices in Orlando will start to increase. We believe we have a window of opportunity, therefore, to create a vehicle to take advantage of this.”
A number of established developments have already been identified for property purchase in gated communities which are rented to professionals working in the vicinity rather than accommodating seasonal tourist visitors. The developments include Manhattan, The Registry, Madison, Trade Winds, Villa Medici and Plantation Park.
Further information is available by visiting www.mapgpi.com or telephone 01292 317214.