Property in Glasgow is currently one of the UK’s best investments, as city house prices outperform the wider market.
- House prices in UK cities have increased by an average of 6.4% in the first half of 2015
- Property in Glasgow continues to be highlighted as a good investment opportunity
- Returns in the latter half of 2015 are expected to increase further as property values rise and tenant demand remains strong
Property investments have generated 6.4% capital growth in the first six months of 2015 alone.
New data from the Hometrack UK Cities House Price Index reveals Oxford, London and Glasgow have been the cities in which house values increased the most over the last six months.
Glasgow’s investment potential was also highlighted last week by the latest LSL House Price Index, with the average price for an apartment in the city increasing by more than £15,000 in the past 12 months.
Property is going to continue to be a wise investment in the second half of the year, with Hometrack suggesting the headline rate of growth across the 20 cities of the index will push towards 10%.
Cities such as Leeds, Manchester, Liverpool and Sheffield, still have average prices that are below the peak of the market in 2007 and represent considerable opportunity for future growth.
Hometrack Director of Research Richard Donnell said: “Rising demand for property against a backdrop of low supply continues to push city level house prices higher. At 8.4%, city level house price inflation is running higher than the overall UK rate.
“While house price growth might moderate slightly in the second half of the year, it looks increasingly likely that city level house price growth will return to double digits by the year end.”
As well as the capital growth on offer to investors, regular returns in the form of rental yields are also at record highs. The lack of supply in the housing market coupled with a growing tendency for rental accommodation ensures yields will continue to grow in the future.