Month: August 2020

Glasgow is one of the UK’s most vibrant cities, and an increasingly popular option for buy to let landlords. The surprisingly affordable housing and great yields have already tempted lots of The Landlord Link members into investing in Glasgow property – will you be next to pick up a rental property in Glasgow?

Read on for The Landlord Link’s guide to buy to let in Glasgow and discover for yourself why Glasgow is a great city for landlords.

Buy and sell rental property free with The Landlord Link >

Why choose Glasgow for your next buy to let property

Decades of regeneration and high profile events like the Commonwealth Games and European Capital of Culture have transformed Glasgow. The city’s historic reliance on heavy industry and shipbuilding led to lean times in the 1980s, but today Glasgow is a thoroughly modern and sophisticated city. Industries like financial services, health, digital technology and green energy employ thousands of people in Glasgow, and the city has one of the largest student populations in the UK.

When Glaswegians finish work for the day, there’s plenty to entertain them in the city centre. Some of the UK’s best shopping, great restaurants, a lively nightlife scene and 20+ art galleries and museums mean there’s always something going on in Glasgow.

There’s a lot to like about buy to let property in Glasgow – not least that it’s the cheapest city in the UK to buy a property. The average sale price across the city is under £120,000 (Edinburgh is nearly twice that) while average rents are around £780 per calendar month. It’s not surprising that Glasgow appeared in our list of the best places in the UK for buy to let in 2020.

There’s good news for student landlords too. Glasgow has three universities with a total of around 65,000 students, making it one of the UK’s largest student cities. The University of Glasgow, in particular, has big expansion plans; a new Innovation campus in Govan is planned, with the ambition of turning the Glasgow waterfront into the UK’s version of Silicon Valley.

Glasgow already has the largest population in Scotland and the National Records of Scotland predicts that the population of Glasgow will grow by 36,000 over the next 25 years, an increase of 6%, increasing demand for housing. The population grew by 1.1% between 2018 and 2019.

While transport links across the city are good, improvements are planned. A major extension to Glasgow Central station for high-speed trains would allow Glaswegians to travel to London in just three hours. The authorities want to extend the Subway, Glasgow’s version of the London Tube, and create a new tram network.

If the transport plans go ahead, areas close to the new links could become property hotspots in the same way that proximity to a Subway station currently pushes up rents.

Search for rental properties in Glasgow >

Housing in Glasgow

When you think of property in Glasgow, the first thing that comes to mind is the typically Glaswegian tenement buildings. These four-storey blocks of flats accessed by a single stairwell were built to house the workers who flocked to Glasgow during the industrial revolution. Their size and quality vary across the city; in the affluent West End they’re often very spacious with beautiful original features.

Rental properties in Glasgow aren’t just restricted to tenement apartments though; modern city-centre apartments, family homes and HMOs are all up for grabs for savvy landlords looking to expand their rental portfolios in Glasgow.

Read The Landlord Link’s guide to buying rental property in Scotland >

The best areas for buy to let in Glasgow

As every successful landlord knows, it’s key to pick the properties that offer the best combination of purchase price, rental income and attractiveness to tenants to minimise void periods. But where should you buy a rental property in Glasgow? At The Landlord Link we’ve done the hard work for you; here are what we believe are the best places for buy to let in Glasgow.

G52: Cardonald, Mosspark and Penilee

The G52 postcode area in Glasgow is one of the best areas in the UK for buy to let yields – in fact, it’s the third-best postcode in the country overall for landlords with an average yield of 8.71%. G52 is a large area in the south-west of Glasgow, bounded to the north by the M8 and the east by the M77. With great transport links, lots of amenities and a wide range of housing stock, it’s no surprise that G52 is popular with landlords and tenants alike.

Cardonald is popular with families for its good schools, easy links into Glasgow by train or via the Clyde Tunnel and affordable house prices. It’s also convenient for the large Queen Elizabeth University Hospital complex and for Glasgow Airport. The housing stock in Cardonald is very varied – large period homes, semis, cottage flats, high rise flats and apartments for those over 55 are all available in Cardonald.

Mosspark is small but convenient with good amenities. Transport links into Glasgow city centre are easy from Mosspark or Corkerhill railway stations and there are plenty of local shops and supermarkets for day-to-day needs. Mosspark is bordered to the south by Pollok Country Park, the largest park in Glasgow.

Penilee is a small housing estate made up of mostly 1930s and 1940s-built houses and flats that were originally for social housing. Hillington West and Crookston stations provide train links into the city centre. Penilee is currently undergoing regeneration so could be an excellent place to pick up your next affordable buy to let in Glasgow.

G51: Govan, Ibrox, Linthouse

G51 is a large and varied area on the south bank of the River Clyde. Much of the area is made up of industrial estates, the large Queen Elizabeth University Hospital complex and shopping centres including Glasgow’s branch of IKEA in Braehead to the west of G51.

Govan is the major residential area in G51 and is receiving significant investment. A new bridge across the Clyde is planned, digital startups are moving in and there’s a growing food scene.

The area is very well connected to the city centre and elsewhere in Glasgow thanks to the Glasgow Subway line that runs through it with stations at Govan, Ibrox and Cessnock.

Buy to let property in Govan and the surrounding areas is again very varied. Tenement flats, semi-detached villas, modern houses and up-to-the-minute apartments are all available in G51. Landlords looking for buy to let properties in this part of Glasgow are looking at yields of around 7.32% based on an average property price of £97,500 and rent of £595 per calendar month.

G67: Cumbernauld

We’ve included Cumbernauld in this guide to the best buy to let areas in Glasgow because of its Glasgow postcode and historic links to Glasgow. Cumbernauld is a separate town, but close enough that landlords considering buy to let property in and around Glasgow should also look at property in Cumbernauld.

Cumbernauld is a new town, so almost all the housing available dates from the 1950s onward. It was built at least in part to rehouse people who’d been bombed out of their homes in Glasgow or who were living in otherwise unsuitable or overcrowded conditions in the city.

While the overall look of Cumbernauld divides opinion, there’s no doubt that it’s a convenient place to live. A number of large businesses have their base in Cumbernauld (including Irn-Bru maker AG Barr) and it’s easy to commute into Glasgow. Edinburgh is only 31 miles away.

For landlords, buy to let property in Cumbernauld is both affordable at an average price of £75,000 and profitable with a yield of around 7.2%.

G32: Shettleston, Sandyhills, Carntyne

These three areas in the East End of Glasgow have become increasingly popular in recent years. Good transport links into the city and cheaper prices than the West End make most parts of G32 a good option for landlord properties in Glasgow.

Like many parts of Glasgow, G32 has a lot of variation in property types, area characteristics and property prices within its boundaries. Average yields in G32 are around 7.13% but by choosing your rental property carefully, higher yields are possible.

Our pick in G32 is Shettleston. Shettleston is an affordable area with a good range of amenities, including a railway station, a large Tesco supermarket and a health centre. Rental properties in Shettleston include family homes and one- and two-bedroom flats in a mixture of modern blocks and traditional tenements. One-bedroom flats in Shettleston start at around £45,000 and rent at around £350-£400 per month, giving a very attractive 9.33% yield.

Scotland LBTT calculator >

While Shettleston is not a traditional Glasgow student area, the University of Strathclyde is only around 5 miles from Shettleston and the area does attract students on a tight budget looking for affordable student accommodation.

Sandyhills, to the south-east of Shettleston, has a higher proportion of semi-detached villas suitable for families along with some larger-sized cottage flats and blocks of social housing. Expect to pay upwards of £55,000 for a one-bedroom flat.

Carntyne is a former coal mining area on the western edge of G32, so closest to Glasgow city centre. The coal mines closed in the late 1800s, and the area became a large housing development in the 1930s. Properties in Carntyne include semi detached villas and cottage flats.

Landlords looking for a more modern buy to let property in Carntyne should look at the family homes available on the Eastfields development. Prices are higher in Carntyne than in Sandyhills or Shettleston but the area is relatively quiet and popular with tenants.

Mount Vernon is also in G32 but property prices in this part of Glasgow are significantly higher, making good rental yields for Glasgow landlords more difficult.

Buy to let properties in Glasgow for sale on The Landlord Link

On The Landlord Link, landlords with rental properties in Glasgow can list them for sale, absolutely free. Whether you’re looking to sell your Glasgow buy to let property or buy a new rental property, join The Landlord Link and buy and sell landlord to landlord.

Take a look at the buy to let properties for sale in Glasgow available now or sell your property today.

Buy-to-let properties are attractive investments for many but there are lots of considerations to take into account before you buy. Buying a house can be a complicated process, even more so when there are several differences between buying property in the UK and buying a property in Scotland.

We’ve put together 10 top tips to provide you with essential information and help you understand the process if you’re looking at purchasing a buy-to-let in Scotland.

1 What does a buy-to-let investment in Scotland involve?

Whether you’re an experienced landlord or new to buy-to-let properties, you need to fully understand the ins and outs of letting a property. Being a landlord means that you have certain legal obligations, especially when it comes to gas safety checks and service charges, so make sure you know what you’ve signed up for.

Landlords in England and Wales must check that their tenants can legally rent their property. This is known as ‘Right to Rent,’ however it does not apply to landlords in Scotland.

2 Check your finances

Buy-to-let properties in Scotland can generate a good amount of income (rental properties in Glasgow have some of the best yields in the UK) but make sure you can afford the property in the first place. It’s a good idea to get financial advice to go through the legal costs that are involved in purchasing a buy-to-let property.

You’ll need to make sure you can cover the costs for any solicitors fees, survey fees and property valuations, on top of maintaining the property so it’s safe for tenants to live in.

3 Land and Building Transaction Tax

In England, Stamp Duty Land Tax applies to properties that cost more than £125,000, however in Scotland, this charge does not apply. Instead, you’ll pay Land and Buildings Transaction Tax when you buy a property.

Other differences between Stamp Duty Land Tax in Scotland and the UK include:

As of January 2019, an extra 4% of the purchase price of the property must be paid on top of the existing Land and Buildings Transaction Tax if you purchase a second property or a buy-to-let in Scotland. This extra charge is known as an Additional Dwelling Supplement (ADS).

The LBTT rates and bands were changed temporarily in July 2020 to stimulate the Scottish housing market. These special rates which make property at the lower end of the market much more affordable will last until the end of March 2021.

Land and Buildings Transaction Tax Bands

LBTT percentage rates from 15 July 2020 to 31 March 2021
Price Bands (£)	LBTT percentage rate (%)	ADS Percentage rate (%)
Up to £40,000	0%	0%
£40,000 to £250,000	0%	4%
£250,001 to £325,000	5%	4%
£325,001 to £750,000	10%	4%
Above £750,000	12%	4%

Use The Landlord Link’s LBTT Calculator to find out how much Land and Buildings Transaction Tax you’ll pay on your property investment in Scotland.

4 Get the right mortgage

When you purchase a buy-to-let property in Scotland you’ll need a specific buy-to-let mortgage. The mortgage rates on buy-to-let properties can be higher than residential mortgages, however failing to ascertain the right mortgage is considered as fraud, and can lead to heavy penalties.

5 Home Reports

It is essential to read through and check the seller’s Home Report to ensure you are aware of the quality of the buy-to-let property you are purchasing.

There are three aspects to a Scottish Home Report: the Single Survey, the Energy Report and the Property Questionnaire. Prepared by a Chartered Surveyor and an important part of the report, the Single Survey details information about the condition and value of the property.

The Energy Report was devised in Scotland and is like the EPC used in England and Wales. It is an essential document that establishes the energy efficiency of the property and informs the buyer of cost-effective ways to improve the property’s environment impact.

The third part of the Scottish Home Report includes the Property Questionnaire, vital for landlords who are calculating their buy-to-let investment. The questionnaire includes information such as the contents of the property, parking arrangements and any alterations that have been made previously, giving landlords an idea of the costs needed to make the property habitable.

You can find out more about Scottish Home Reports and compare Home Report providers with the reallymoving.com online quote form.

6 Know the area and your tenant

It’s important to research the area before deciding on purchasing a buy-to-let property to make sure both the property and the location will appeal to tenants. Towns and cities with good transport links are often extremely desirable, as well as areas with universities, hospitals and good schools.

Read more: The best areas for buy-to-let in the UK in 2020

The type of tenant you want to attract is equally as important as the location of your property. Do you want students renting your house? Or young professionals? Whatever type of tenant you’re looking for, be sure to provide the type of fixtures and furnishings they will expect, especially as a group of students will have different wants and needs from a property to a professional couple.

7 Agency Fees

Are you going to manage your buy-to-let property yourself or are you going to instruct a letting agency? Make sure you can complete all your obligations as a landlord if you’re choosing to manage the property yourself, especially as it can be costly if you fail to meet the agreements within the tenancy agreement.

Similarly, you’ll want to compare costs to make sure you get the best deal if an agency is going to manage the property instead.

8 Landlord Insurance

As a landlord you will need specialist insurance for your buy-to-let property. Along with building insurance, if your property is furnished or part furnished, you’ll also need contents insurance too. There are various types of landlord insurance policies available so be sure to research for the right deal, especially as you might also be able to purchase a policy that covers your rental income if your tenant doesn’t pay.

9 Calculate the investment returns

To understand how well your buy-to-let property is doing, you will need to calculate the return on your investment. Property returns are usually referred to through rental yields and to calculate the return on your investment, you need to work out the sum as a percentage of how much you have put down to purchase the buy-to-let property.

The biggest problem for landlords comes from rental voids where a property sits empty in between tenants and don’t forget that maintenance costs, tax and other expenses will all make a dent in your investment returns.

10 Spend money to make money

As a landlord you are obliged to ensure that your buy-to-let property is in a habitable condition for your tenants. While many might think that basic fittings and furnishings will save money, poor quality renovations to your buy-to-let could cost you more money in the long run. Covering up problems with cheap repairs can often mean you’re spending more money on fixes that won’t last.

It’s a good idea to nip problems in the bud and rectify any issues as and when they arise – that way your tenants will see that you’re proactive in helping them with solutions that will keep both your property and your tenants happy.

If you’re looking for your next buy-to-let property in Scotland, take a look at the listings available, or add your own property for free.

Alternatively, if you’re looking for Conveyancing, Surveying or home removals services and Scottish Home Reports, visit reallymoving.com for instant quotes and more information.

Manchester is an extremely popular city for landlords looking for buy to let property. A rising and diverse population, improving connectivity and plenty of job opportunities make it an intriguing choice.

But which areas in Manchester are best for rental opportunities and where should landlords look to expand their property portfolios? Read on for The Landlord Link’s guide to buy to let in Manchester.

Why buy a rental property in Manchester?

Manchester has always been at the forefront of innovation. From cotton mills in the 1800s to today’s vibrant technology and media scene, it’s a city for up-to-the-minute optimists. Manchester is second only to London in terms of technology investment and has ambitions to be a world-class city within the next five years.

The population of Manchester is growing too; 2.7 million people live in the Greater Manchester area, with the population in Manchester itself expected to rise to over 530,000 by 2025.

Manchester residents benefit from superb shopping, restaurants, nightlife and cultural opportunities, as well as connections to the rest of the UK. Manchester Airport is the busiest airport outside London with connections across the globe.

Like any large city, the population in Greater Manchester is extremely diverse. Manchester has more multi-millionaires than any other UK city apart from London; on the other hand a 2010 study found that the Manchester City Council area was the 4th most deprived local authority in England.

Buy property from landlords in Greater Manchester >

The housing stock in Greater Manchester (which includes areas like Salford, Stockport, Oldham, Wigan, Bolton and Rochdale) is as varied as the population.

The best areas for buy to let in Manchester

Property investors in the Manchester area have a great range of areas and housing types to choose from. Which area in Manchester will you choose for your next buy to let investment?

Manchester City Centre

Manchester has seen a huge city-centre living boom over the last 20 years, starting in the converted warehouses of the Northern Quarter and spreading across the city centre. Shiny new apartment blocks seem to rise up on an almost-weekly basis, and there’s historically been no shortage of professional singles and couples to live in them.

2020 has changed this a little, and letting agencies in Manchester report that they’ve seen an increase in city-centre renters looking to move out of apartments in favour of larger properties with some outside space in areas like Chorlton and Didsbury. As a consequence, there’s a slight oversupply in apartments at the top end of the market, with Manchester landlords having to realign their rental expectations.

Sell your rental property in Manchester for free on The Landlord Link >

It’s not all bad news for Manchester city centre landlords. The same landlords reporting declines at the upper end have also seen an encouraging trend for people who live just outside Manchester city centre looking for homes where they don’t need to commute to their central jobs by public transport. Agents also believe that the upper end will bounce back, so now could be the time to pick up a bargain for the longer term.

Landlords looking for buy to let properties in Manchester city centre to add to their portfolio should choose carefully; apartments should be large enough to accommodate working from home, and any outside space is a huge bonus.

Wythenshawe

Wythenshawe is in the south of Manchester, near Manchester Airport. The Metrolink tram arrived in Wythenshawe in 2014 and since then interest in the area has grown. Employment opportunities are increasing, an injection of funding has improved facilities and schools, and the Airport City development should make the area more and more attractive.

Wythenshawe was at one time the largest council estate in Europe and most of the housing is social housing built between the 1920s and 1960s, with pockets of newer houses. Yields of around 7% are still possible in Wythenshawe, while rising property prices in this part of Manchester make it a good area to look at if you want a combination of solid yields for the short term and long term appreciation.

M14 – Rusholme and Fallowfield

The M14 area of Manchester has been pinpointed as one of the best areas for buy to let in 2020. Average property prices in the region of £170,000 and potential rental yields of 7.6% certainly look very attractive to Manchester buy to let investors.

Both Rusholme and Fallowfield are popular areas with students at the University of Manchester and Manchester Metropolitan University. There are a number of student halls in the area and students who choose not to stay in halls often choose the terraced houses of Rusholme and Fallowfield. Fallowfield housing attracts a premium and HMOs in Fallowfield tend to be of better quality.

Between 2012-13 to 2017-18 the student population of Manchester grew by around 7%, but purpose-built student accommodation grew too. At the moment Manchester doesn’t have the student house oversupply issue that we’ve seen in Liverpool, but it may not be far away. If you’re interested in buying an HMO in Manchester we recommend looking carefully at how convenient the property will be for tenants, and how the quality of what you’re planning to offer compares to others in the market.

Property investors in Manchester should also be aware that like Birmingham, there’s an Article 4 direction requiring planning permission for all new HMOs across the entire Manchester City Council area. There are also Article 4 directions on changing the use of office or light industrial facilities to residential in several areas. As always, do your research before buying a property to rent out in Manchester.

Levenshulme

In 2019 The Sunday Times named Levenshulme one of the best places to live in the UK. The judges liked up-and-coming Levy’s food scene and community feel, and if you add in easy connections to Manchester City Centre, it’s pretty clear to see why everyone loves Levenshulme.

Professional tenants who’ve been priced out of Chorlton or Didsbury are choosing Levenshulme instead, and the area has seen a 22% increase in house prices since 2017. That growth has eaten into prospective yields somewhat, but the increasing popularity of the area means that careful investors could achieve 5-6%.

Droylsden

Out to the east of Manchester, in the Tameside council area, you’ll find Droylsden. This part of Manchester was built up in earnest in the 1930s, so much of the housing stock in this area is 1930s semis, making Droylsden particularly suitable for families.

Droylsden has a large Tesco supermarket and local shops, while the Metrolink tram runs through the middle of the area, connecting Droylsden to the city centre and Media City in Salford. It’s a popular and stable rental area, growing in popularity for its convenience.

Landlords looking to add a buy to let property in Droylsden to their portfolio could be looking at yields of close to 6%. For a cheaper initial outlay but similar yields, take a look at nearby Ashton-under-Lyne, which is particularly well served by public transport with Metrolink, a train station and a brand new bus station.

Which of these areas in Manchester would you choose for your next buy to let investment?