Buying property in Glasgow? A brief guide for property investors
Glasgow is one of the most popular cities in the UK for property investment, and it’s easy to see why. Glasgow offers property investors great returns, with high rental yields and strong demand for rental properties.
The city has a thriving economy and is home to many major businesses, making it an attractive place to live and work.
In the past 5 years, Glasgow has seen average house price growth of 4.5%, making it an excellent city for investment. Rental prices have also grown steadily, with the average rent for a one-bedroom flat in Glasgow now standing at £843 per month.
In the past year, house prices in Glasgow climbed 6.8%, with the average purchase price in the city now £185,000. This is higher than the average rise throughout Scotland, where the cost of property increased by 4.7% in the same period.
Moreover, the average private rentals in the city stayed about the same as the previous year, up slightly to £1,199 compared to £1,192, indicating the impressive returns for property owners in the city.
Glasgow is also known as a notable city for gross rental yields, with yields ranging from 5.5% to 8% in some areas, much higher than in many other cities in the United Kingdom.
Table of сontents
- What are the requirements to buy a property in Glasgow?
- How much tax do I pay when buying a property in Glasgow?
- How to find a property in Glasgow?
- Where to buy property in Glasgow?
- What are the pitfalls of buying property in Glasgow?
- Why buy property in Glasgow?
- Is it worth buying a property in Glasgow?
- Can foreigners buy property in Glasgow?
- Is now a good time to buy property in Glasgow?
- Invest in Glasgow with GuestReady
1. What are the requirements to buy property in Glasgow?
There are few restrictions on who can buy property in Glasgow, making it a great city for investment. However, property purchases in Scotland work a little differently from the rest of the UK.
Solicitor Negotiations
In Scotland, properties are bought and sold through a system called ‘Solicitor Negotiations’. This means you will need to instruct a solicitor to act on your behalf in the purchase process.
Home survey
The seller must provide a home survey, an energy performance certificate and a property questionnaire as part of the marketing process.
Mortgage agreement
The buyer must have an agreement in principle for a mortgage arranged before making an offer on a property unless buying in cash.
While some of the steps that the solicitors take are different from the rest of the UK, the process is broadly the same for the buyer themselves. You will need to provide the following:
- Proof of ID – passport or driving licence
- Proof of Address – utility bill, bank statement or council tax bill
- Evidence of funding source – Payslips or bank statements
Your solicitor requires these documents as part of the due diligence they must carry out on your behalf.
2. How much tax do I pay when buying a property in Glasgow?
Stamp duty in Scotland has been renamed the Land and Buildings Transaction Tax (LBTT). The LBTT is a tax payable on the purchase of property, and the amount payable depends on the property’s value.
The LBTT rates for residential properties in Scotland are:
- 0% on properties worth up to £145,000
- 2% on the amount between £145,001 and £250,000
- 5% on the amount between £250,001 and £325,000
- 10% on the amount between £325,001and £750,000
- 12% on the amount of the property value above £750,000
Please note that these rates are applicable for first homes only. For additional dwellings, an extra +4% applies to each band.
After the purchase, you will receive a bill for council tax (a yearly property tax) and water rates, which are bundled together. The amount demanded will depend on the properties band (an assessment of the property’s value).
For complete information on the amount of council tax and water charges for a Glasgow Property, check here.
UK properties’ earnings are subject to income tax. As a non-UK resident, you are only taxed on the money you earn in the UK, so you don’t need to worry about suddenly becoming liable for tax on your home country’s income.
3. How to find a property in Glasgow?
There are many online property portals in the UK. These include Rightmove and Zoopla, offering the widest selection of Scottish properties online. If you prefer a local real estate agent, the most active agents in Glasgow are Town & Country Glasgow, Clyde Property, and AB Property Consultants & Estate Agents.
4. Where to buy property in Glasgow?
The city, as a whole, has a lot to offer residents. There are many different areas of Glasgow, each with its own unique charm. The Merchant City is the historic centre of Glasgow and is known for its lively nightlife and abundance of culture. If you’re looking for somewhere a little more relaxed, the West End might be more your style.
It is important to be aware that Glasgow is one of the first cities in Scotland to implement restrictions on short-term leases, specifically on Airbnb. A licence will be required to operate an Airbnb rental within the city. Those who operate without a licence will risk a £50,000 fine and a ban.
The regulations restrict short-term rental in flats located close to communal entrances or facilities, where the regularly changing occupants can cause issues for neighbours. The rules will also apply to mixed-use developments, such as office blocks with residential flats.
Additionally, there are many areas where the local authorities will almost certainly refuse a licence due to an already high number of non-residential uses and issues with parking and congestion.
However, the good news is that there are areas where the rules are more relaxed, and there are ways to work within the restrictions in the more restricted areas.
Merchant City
The Merchant City is the historic centre of Glasgow and is known for its lively nightlife and abundance of culture. The Merchant City is popular with young professionals and students due to its close proximity to Glasgow’s universities.
The Merchant City offers many local amenities, including pubs, restaurants, and cafes. It’s also home to some of Glasgow’s most iconic architecture, including The Lighthouse and The Tron Theatre.
Merchant City is an area that continues to allow some Airbnb and short-term leases, subject to acquiring a licence. Licences will generally be granted along active travel routes and areas with high accessibility. The average price of a property in Merchant City, Glasgow, is £179,648, up 3% on last year’s figures. Average yields in Merchant City (G1) sit at 8.3%, one of the highest in the city.
Townhead
Located just north of the Merchant City. Townhead is a primarily residential area with a mix of Georgian townhouses, Victorian tenements, and more modern developments.
Townhead is close to Glasgow Cathedral and the Glasgow Royal Infirmary. It’s also within walking distance of the University of Glasgow and Glasgow Caledonian University.
Townhead is an area that has been affected by the new Airbnb and short-term letting regulations. While it’s still possible to operate a short-term let with a licence, the number of licences that the council will grant is limited.
If you wish to offer an Airbnb or other short-term rental in this area, give careful consideration to the property’s location. To obtain a licence, ensure the property is not close to communal entrances or facilities.
It’s more expensive to buy property in Townhead than in Merchant City, with an average purchase price of £185,859 this year, up 14% on last year’s average purchase price. Yields are particularly impressive in Townhead (G4), with an average of 8.5%.
Dennistoun
Dennistoun is located to the east of Townhead and is another popular residential area. It’s known for its Victorian architecture and tree-lined streets.
Dennistoun is home to a number of independent shops, cafes, and restaurants. It’s also well-connected, with frequent bus and train services into the city centre.
Dennistoun has been strongly affected by the new Airbnb and short-term letting regulations. It is a near certainty that any application for a licence on a previously unlicensed location will be denied. Therefore, our advice would be to look out for currently licenced properties that enter the market and snape them up, as Dennistoun offers one of the highest yields in the city, which may be worth the higher purchase prices.
2025 is a great time to buy in Dennistoun, as it’s one of the few areas in the city where the average property price dropped last year. In fact, the purchase price was down 3% from the previous year, with properties currently going for £164,093. Yields are high for properties with a Dennistoun postcode (G31), with an average of 8% in 2025.
Partick
Partick is located west of the city centre on the north bank of the River Clyde. It’s a popular area for students due to its proximity to the highly celebrated University of Glasgow. Partick is also well-connected, with frequent bus and train services into the city centre. It’s home to a number of independent shops, pubs, and restaurants.
While Partick has not been as strongly affected by the new Airbnb and short-term letting regulations as other areas, it is already a vibrant and busy area, so expect some licencing challenges. Look for properties located along major transport routes, as these will be generally allowed if it is clear there will be no effects on the character of the area.
Given its popularity, Partick is a comparatively expensive place to buy in Glasgow, with average property prices sitting at £251,115 in 2025. This is up 9% year-on-year. Properties in Partick (G11) tend to have lower yields than areas like Merchant City and Townhead, with an average of around 6.9%, which is still decent if you’re planning a buy-to-let investment.
Govan
Govan is a district in the southwest of Glasgow, on the south bank of the River Clyde. It’s an area with a long industrial heritage and was once home to shipyards and engineering works. These days, it’s a popular residential area for young professionals and families.
The new Airbnb and short-term letting regulations will significantly impact Govan. There are already many Airbnb-style rental properties in the area, and while many will manage to obtain licenses, some are bound to be disappointed.
To increase your chances of obtaining a licence to operate a short-term rental, give consideration to the location of the properties. Avoid properties in cul-de-sacs and other small communal areas, and instead, look for properties that are either along major transport routes or set deeper in areas of communal properties, like the upper floors of blocks of flats.
As a former industrial area, Govan boasts relatively cheap property prices in Glasgow, with an average price of just £161,603 in 2025, up just 1% on the previous year. The average rental yields in Govan (G51) are high at 8.1%, making this a good place to invest if you can find the right property in 2025.
Hillhead
Hillhead is located west of the city centre, just north of Partick. It’s a popular area for students due to its proximity to the University of Glasgow and the Glasgow School of Art. It’s known for its Victorian architecture and tree-lined streets. Hillhead is also home to a number of independent shops, cafes, and restaurants, as well as being well-connected, with frequent bus and train services into the city centre.
Hillhead will be impacted by the new Airbnb and short-term letting regulations but not to the same extent as other areas. As a salubrious area in Glasgow’s sought-after west end, Hillhead is expensive, with an average property price of £385,419 in 2025. Property prices are down 5% on average this year, so 2025 is a good time to buy in Hillhead.
One of the downsides to this area is that properties with a Hillhead postcode (G12) don’t tend to perform as well in the rental market, with average gross yields of just 4.90%, one of the lowest in the city centre.
5. What are the pitfalls of buying property in Glasgow?
As we’ve covered above, if you are planning to invest in a property with the intent to let it via Airbnb or other short-term leases, you need to be aware of the new regulations that were put in place earlier this year. By 2024 all short-term lease owners must be licenced or risk a £50,000 fine and a ban from renting out property in the city.
Short-term licence
While it’s still possible to operate a short-term let with a licence, the number of licences that will be granted is limited. Look for properties on major transport route (i.e., noisier, less appealing locations with an already high number of people in transit) and avoid properties that sit at communal entrances, to ensure your short-term lets do not impact the existing population of the building.
UK’s economy
Glasgow is not immune to wider economic forces. A downturn in the UK economy could lead to a decrease in demand for rental properties and a consequent decrease in rental prices. With recent political problems, the UK economy is far from stable, so this is something to bear in mind when considering investing in property in Glasgow.
Property value
Finally, as with any investment, there’s always the risk that the property you purchase will not increase in value as much as you hope. While Glasgow has seen strong growth in house prices in recent years, there are no guarantees.
6. Why buy property in Glasgow?
Despite the risks we’ve outlined above, the city has seen consistent growth in property value growth, which has yet to suffer from any significant downturn. An imbalance in the supply and demand of properties, particularly in the rental market, has helped push prices up, and with a young population and strong economy, there is every reason to believe that this trend will continue.
Glasgow also offers investors a great deal of choice. From city centre apartments to family homes in the suburbs, there’s something to suit every taste and budget.
7. Can foreigners buy property in Glasgow?
Yes, foreigners can buy property in Glasgow. There are no restrictions on who can purchase property in the city. However, you should be aware of the potential extra costs involved, such as stamp duty. As your investment is likely not to be your first property, you will pay an additional 4% on top of the standard stamp duty rates.
8. Is now a good time to buy property in Glasgow?
2025 is a great time to invest in property in Glasgow. According to the latest ONS research:
- Property prices in Glasgow are rising more significantly (up 6.8%) than properties in the rest of Scotland (up 4.7%).
- The average price of a property in Glasgow is £185,000, much lower than the average price in Edinburgh (£334,000), Scotland’s capital city. This makes Glasgow a more inviting prospect to would-be investors.
- Rental yields in the city are high, averaging between 5.5% and 8% in most areas. The average private rent in Glasgow is £1,199 in 2025.
Often, tourists and investors alike overlook Scotland’s second city in favour of nearby Edinburgh, but Glasgow has a lot going for it.
It has a vibrant sports scene – including two of the biggest football clubs in the world – access to brilliant golf courses, and it serves as the gateway to Loch Lomond, one of Scotland’s most stunning National Parks. It’s also home to a thriving arts and theatre scene in the west end, while Glasgow University is one of the best in the United Kingdom.
Add affordable house prices and impressively high gross rental yields into the equation, and it’s easy to see why Glasgow is a brilliant option for would-be investors in 2025. Just don’t expect great things from the weather – Glasgow is pretty dull for most of the year!
If you plan to develop some short-term rentals in the city, seek advice from GuestReady, or a local agent, before proceeding. We can guide you to the best areas to ensure your applications are successful.
9. Invest with GuestReady in Glasgow
GuestReady provides professional management services in Glasgow. We can help you maximise your rental income, ensure your property is compliant with all relevant regulations, and take care of all the day-to-day hassles of being a landlord.
We ensure your listings are up to date, with professional photography, compliant documents, and a dedicated manager to answer any questions your guests might have.
FAQs
What are the best areas to invest in property in Glasgow in 2025?
Given the relatively low purchase price and the high rental yield, Merchant City is one of the best places to invest in Glasgow property in 2025. You can buy for under £180,000 and expect yields of 8% or more. Govan is similarly attractive for buy-to-let investors, though it’s not as nice for residents as the former.
What yields can I expect on my Glasgow property investment?
The average yields in Glasgow are impressive, and they’re much higher than in other popular investment cities like London, Lisbon, and Paris. For instance, in 2025, you can expect a gross rental yield of between 5.5% and 8%, depending on the area. Townhead and Merchant City are two of the best areas for high yields, with over 8% expected in both neighbourhoods.
Is Glasgow more expensive than Edinburgh for property?
No, Glasgow is significantly cheaper than Edinburgh for investors. For instance, in 2025, the average property price in Glasgow is £185,000, while the average property goes for £334,000 in Edinburgh. Given that you can travel between the two cities in 45 minutes by train, Glasgow represents brilliant value and is a good alternative to living in Scotland’s capital.
