The West End of Glasgow has been famed for years as one of the most desirable residential areas in the city, if not the country. This reputation shows no signs of dulling any time soon.
2017 has seen the West End property market exhibit an ongoing strength in demand across almost all property types. Offers will be between 10%-15% above the Home Report valuation, closing dates are common and sales are fast and furious.
Earlier this year, fellow estate agents Savills recently reported that prices in this area will increase by almost 19% over the next five years. By way of comparison, only a 14% increase in Scotland and 17% across the UK is predicted.
In real terms, there were almost 4,000 property transactions in Broomhill, Partick, Hillhead, Dowanhill, Hyndland, Jordanhill, Botanics, Kelvinside, Park and Claythorn last year.
We have witnessed the increased popularity of Finnieston, in line with its recent gentrification, particularly among young professionals and parents of university students looking to make the investment of buying a flat instead of renting.
Slightly further out, in areas like Kelvindale and Broomhill there is an increased demand as these areas allow proximity to the West End but without the high prices.
The West End’s continued upsurge in popularity is partly explained by the imbalance of supply and demand in UK property at the moment. There are much fewer properties coming onto the market than buyers looking for them.
Further, in contrast to previous years, there are more readily available, good value mortgage offers available where deposits required may be around 35% – too good an opportunity to miss.
However, we can report some areas of the market which are experiencing this trend less.
At the upper end of the market, the Land & Building Transaction Tax on valuable properties has impacted the offers that prospective buyers are ready or willing to make. While the buyer may once have had a budget of £450,000, for example, now they are only willing to consider £400,000 to mitigate against those higher taxes.
Similarly, the Additional Dwelling Supplement (ADS) tax adds an extra 3% of the purchase price if a buyer already owns a property and does not sell their first property for up after 18 months. This means that those with second homes, buy to let landlords or existing home owning couples moving in together for example, must be savvier with their purchases.
These factors mean that if you are looking to buy a property in the West End now is as good a time as any to explore your options.
However, you must be ready and willing to act quickly which means ensuring your lawyer and mortgage are prepared and, if necessary, your existing home is already on the market. Tackling these issues will make your life much easier when trying to secure your dream home – you will be the most desirable candidate to a seller.
If you’re selling and you want to make sure you get the best deal on your property or you want to make a smart investment, Cairn Estate Agents are the perfect place to start. You can contact us here if you have any investment questions.