Glasgow continues to buck property market trends with sales rising faster than anywhere else in Scotland and anywhere in the UK apart from Liverpool, Leicester and Manchester.
Residential property sales grew by 5% in the city last year compared with a national average of 1.7%, the slowest rate since May 2012, according to figures published by the property portal Zoopla.
A sluggish market in London and the South-east and uncertainty over Brexit is blamed on weaker demand across much of the UK.
However, the market in Glasgow has continued to grow at an exceptional rate, registering the UK’s second highest increase in sales since 2015, with transactions up by 12%. Only Liverpool performed better, with a 19% rise during the same period.
Sales volumes in southern cities are 13% lower than in 2015. Weaker demand has steadily reduced the rate of residential property price inflation.
Sales are down by 20% in Cambridge, in line with the decline in London, and by 12-13% in Portsmouth and Bournemouth. Edinburgh appears to have surrendered its former dominant position in the Scottish housing market, with a 2.9% rise in sales last year while Aberdeen – where sales fell by 0.4% - continues to suffer from the effects of a decline in the oil and gas sectors.
Glasgow’s performance has been powered by strong inward investment and the arrival of young, upwardly mobile workers to feed the growing creative, technology and financial services sectors.
A shortage of available housing stock has also contributed as demand continues to outstrip supply, leading to price inflation.
Gregor Cope, a Director of Scottish Property Centre Shawlands, said: “The property market in Glasgow, and in the Southside in particular, continues to defy predictions that uncertainty over Brexit would lead to a slowing down of activity.
“In fact, we’re seeing the opposite, with sales volumes reaching and, in some areas, exceeding historic levels.
“Despite a minor hiatus as we approached the March 29 deadline for Britain exiting the European Union, we have continued to see record growth and there’s no sign of things slowing down at the moment.”
Meanwhile rents in Scotland remain among the most affordable in the UK, according to separate research by Zoopla.
Its most recent Property Market Insights report says demand for, and supply of, private rented housing has expanded over the last decade, with private rents increasing at different rates in local housing markets.
Rents remain highest in London where renters spend around 39% of their earnings on accommodation compared with around 28% for those north of the border.
For more information on residential properties to buy or rent call your local Scottish Property Centre branch or visit www.scottishpropertycentre.net.