It has been a challenging year for many people for a variety of reasons and we have experienced a once-in-a-generation pandemic, with another lockdown currently in place. But what is the outlook for 2021 for the rental market in particular?
In early December we saw the first dose of the Covid-19 vaccine administered in Scotland. This resulted in a rise in demand for rental property, in particular good quality homes with space for working from home and access to a garden, as we look towards spring and those who have delayed previously seeking accommodation.
There is an increase in demand for space – much like we saw in July 2020 following lockdown when people were confined to their homes. Gardens and roof terraces were in high demand as were spare bedrooms and larger living spaces to accommodate home working.
Last year’s restrictions on socialising may well push demand for homes with space for entertaining as people look to make up for lost time. Summer 2021 could see a sharp rise in people looking for larger kitchens and dining areas in which they can entertain friends and family.
During lockdown the demand for pets has been unprecedented. As a result, there will be an increase in demand for pet-friendly properties. Google recently reported a record number of pet related searches – and as well as homes that accept pets, there will be a requirement for access to parks and trails.
Google searches for rental properties with outdoor space has increased and allotment waiting lists are higher than ever before. This year could be a year that homeowners reconnect with nature.
Recent research from Howsy has shown that houses are in higher demand than flats. However this isn’t as pronounced in Glasgow which shows that demand for houses is 59% whilst demand for flats is 41%. The current pandemic has shifted tenant demand but the demand for flats in Glasgow still appears to be robust especially given the number of university students moving to the city.
The average university rental yield is 4.4% across the UK, with the top three results found in Scotland. The University of Dundee came top with an average rental yield of 7.2%. Second and third were the University of Aberdeen and the University of Strathclyde with rental yields of 6.8% and 6.62% respectively. The University of Glasgow had a rental yield of 4.4%.
Students will be searching for accommodation now that they have more information regarding their results and the influx in demand is positive news for buy-to-let landlords in Glasgow.
Talk to us if you are considering investing in rental property in Glasgow.