r/Glasgow Tools

It’s definitely a tough market… it all depends on what you are looking to buy. Kirkintilloch is a good area and does have affordable flats to buy. Houses with back and front gardens on the other hand don’t stay on the market for more than a few days and are going way above HR. I have been speaking with a few people about this as my flat is currently on the market.

There are a few different things going on just now. 1, the pandemic has allowed people to save a shit ton of extra cash. 2, The pandemic has also made people want to have bigger space which means they are prepared to pay a premium for it. They are skipping buying small 1 bed flats and going straight to bigger homes. 3,Folks from outside of Glasgow are also buying here. For instance, many Londoners are buying pension fund rental properties here because they can no longer afford their own homes in London. They have been priced out by foreign billionaires who have the additional £25-£100k to outbid.. this is now having a knock on effect up here.
I’ve worked in mortgages for a while a long time ago and I remember a similar thing in 2008… houses selling way above their value and when the arse fell out the subprime market everything collapsed. This isn’t exactly the same but…
With inflation starting to rise and rise the Bank of England will need to do something about it and the most common thing they do to counter balance high inflation is to raise interest rates. One theory is that this will cause the market to slow down and for prices to balance out because the repayments will be less affordable. This could also cause the market to crash completely again like in 2008. With peoples mortgage payments being more expensive this could result in more repossessions and a stall in the regular buyers market and increase in the buy to let market.
My gut tells me that this cannot continue at its current rate and the market has to crash but this is not a guarantee.
Honestly, good luck to you and your partner and hope you find your dream home.