Glasgow West End Property Market: 2024 Outlook
Whilst a Google search will provide much information regarding the current property market, few sources detail the smaller market that is Glasgow’s West End. Our summary of the current data and trends will give you an insight into the Glasgow West End property market currently; what we’re seeing on the ground, the conversations we’re having with buyers, and most importantly, what people are offering on properties like yours.
Although the narrative of the media regarding the property market remains negative, we would like to reassure you that the microclimate that is Glasgow’s West End is still performing well, in relation to the rest of the country.
Q1/Q2 2023: Market Overview Interest rate changes during Q1 & Q2
Interest rate changes during Q1 & Q2
- 15/12/2022: 3.5%
- 02/02/2023: 4%
- 23/03/2023: 4.25%
- 11/05/2023: 4.5%
- 22/06/2023: 5%
As anticipated, 2023 was a bit of a rollercoaster and it felt as if we had three mini markets within the year. The year got off to a great start, driven mostly by buyers who had locked-in low interest rates on their mortgage applications and were keen to take advantage of these lower rates before they expired.
We were aware of a change in the market around Easter however, during which time there were many conversations regarding interest rates rising, resulting in the market slowing slightly for around three to four weeks. Both buyers and sellers seemed to be waiting to see how things were going to pan out, which in turn reduced the number of properties available. Buyers also became more discerning, taking their time when purchasing or considering making an offer. They were leaning on us for advice and general guidance regarding the market, more so than in recent years.
Come May and June, we observed an increase in demand from buyers, which in turn, drove prices up. Buyers had become accustomed to the reality of higher interest rates, and these months saw a rise in the average number of bidders at Closing Dates.
Q3/Q4 2023: Market Overview Interest rate changes during Q3 & Q4
Interest rate changes during Q3 & Q4
- 03/08/2023: 5.25%
- 14/12/2023: 5.25% HELD
With yet another Bank of England rate rise in August, we expected to see a slowdown, particularly during the summer holiday season. However, limited stock levels kept buyer demand high. As of 14th December 2023, the Monetary Policy Committee (MPC) has voted to hold the base rate at 5.25%; a positive sign for the housing market in 2024.
One significant change we observed was the difference between the highest and lowest offers at Closing Dates. The gap appeared to be wider than in 2022 (i.e. the average offer over Home Report is decreasing) and this is a trend which unfolded as Q3/Q4 of 2023 went on. We believe there were two reasons for this: the increase in Home Report valuation values and the financial implications for buyers caused by the cost-of-living crisis.
Across the property price points that we work, the sub-£250,000 bracket has been affected the most. This price point tends to be made up of first-time buyers and investors, the groups most likely to be impacted by mortgage rates and the 2022 Cost of Living (Tenant Protection) (Scotland) Act.
Glasgow West End Property Market Predictions: What are we expecting in 2024?
According to UK Finance, there are around 1.6 million mortgages due for renewal in 2024, many of which will still be on low rates. We expect that these renewals will bring more property to the market.
Generally speaking, property prices have levelled out. We’re not seeing the month-on-month average price increases we saw this time last year, and we anticipate that this will be the norm for the coming year. Going forward, we predict that prices will not fall but stay level (in line with what we observed in Q3/4 of 2023).
In our view, 2024 will be a year of relative stability, with a touch of caution, but with prices remaining steady. We expect interest rates to settle and more competitive mortgage deals to return to the market.
The reason we predict that prices will remain steady, despite external economic factors, is because of buyer demand. The West End of Glasgow is one of the most well-known and popular areas within the UK. We know this first-hand because over 60% of the properties we sold in 2023 were to buyers outwith the Glasgow area, with the majority coming from England. Glasgow property provides excellent value for money when compared to other cities.
We hope you’ve found the information within this blog both useful and reassuring. If you’d like to discuss the current or future sales or rental market in more detail, please do get in touch with us.
We’re proud to say that over the years we’ve become a leading and highly (Google) rated Estate Agent within Glasgow’s West End, and we get to know the majority of our clients through word-of-mouth referrals. This is a result of working diligently to secure our sellers the highest possible price, and find my buyers their dream home, all while providing a personalised and single point of contact service.
If you’d like to discuss the future market in more detail, or for an up-to-date valuation on your home, please do get in touch.