scottish property news
 

Choose area wisely

 © Evening Times
Originally published: 01.08.2006

The West End of Glasgow has traditionally been the strongest rental market in the city, but things are slowly changing.

Orry Lovatt, of Edzell Property Management, says: “The West End of Glasgow has traditionally seen the strongest demand for rental property because of the University, the hospitals, the night life and the general cosmopolitan nature of the area.

“A few years ago with prices rising steeply in the West End, the South Side became increasingly popular but prices have risen steeply in this area recently.

“You are quite right in thinking about the East End – places like Dennistoun have become popular with people working in town and students. Prices are slightly lower also and they are showing a better yield.”

Carolyn Donaldson, of Dwell Lettings and Property Management, explains: “We are always being asked for properties in the West End of Glasgow.

“However, the rental amounts that tenants are prepared to pay do not always come up to expectations, especially as these properties tend to be quite expensive!

“We have recently seen an increase in landlords heading out of the city centre to buy in surrounding areas such as Paisley and Clydebank where house prices are lower and rental demand is good.

“Similarly the East End can be a good buy as there are many areas that are being regenerated. However you do have to be careful which parts you invest in.”

Ian Beard, director of Fineholm Lettings, agrees. “The West end still offers the continuity of lease which today is so important,” he says. “Void or empty periods are minimal. You can still find properties that offer a reasonable rental yield but you must be careful.”

He advises: “Research thoroughly and do your figures, building in for eventualities. Your capital appreciation should be good though.”

And he adds, “The South Side is similar to the West End, and don’t rule the East End. It offers some good returns, particularly in areas close to the city centre.

“Again though, do not buy without checking the areas and the street out. If you would not like to live there, chances are the tenant would not like to either.”

Jennifer Allan, letting executive with Strathclyde Homes Residential Letting, says one of the big growth areas is Dennistoun.

“The West End is consistently popular, thanks to its mixture of students and professionals, and the South Side is widely seen as a more reasonably priced alternative to the West End.”

She adds: “But there is a lot of development going on in the East End of the city and Dennistoun in particular is already benefiting from its proximity to the Merchant City.”