Housing market in Glasgow
The West End of the city is experiencing a positive trend
The Glasgow housing market grew explosively between 2001 and 2007, but prices fell in 2008. Today, the property market in the largest city in Scotland situated on the banks of the River Clyde is recovering, even if some areas remain much more affordable than others. In 2010, the average price of homes in the city was around £ 143,607.
The West End of the city is experiencing a positive trend at the moment thanks to the possibility to make different kinds of investments: there are tenement flats, period properties and townhouses for sale/for rent available for local and foreign investors along with three-storey semidetached homes with Victorian cupolas and bay windows. Many potential property buyers are fascinated by the typical Scottish architecture. There are several Edwardian gems for sale in Glasgow, but the price of period homes vary according to the historic details they have preserved and can be over 2 million euros. Anyway, it is a niche market that keeps being successful. At the moment, the supply of historic homes is limited, since current owners overpaid their homes during the real estate boom and prefer to wait for a better moment to resale their property and recover the money they invested at that time.
There are no restrictions on foreign buyers in Scotland who can choose among various ownership options when buying a home in Scotland – including shared ownership schemes. The first step consists in applying for a mortgage and see how much an investor can borrow. Lending standards have become tighter due to the global economic downturn; therefore, it may difficult for overseas buyers to obtain financing from Scottish or British banks, building societies or other financial institutions, unless they have an employment contract.
The next step is to hire a solicitor – who will be paid only when the offer will be accepted – to handle legal procedures. After having found an interesting home for sale, potential buyers and lenders have the right to request a home report to be produced by a surveyor. The solicitor must note the interest of the prospective buyer in the property in order to ensure that it will not be sold without giving the potential investor the possibility to make an offer.
Real estate properties for sale in Scotland are advertised as “fixed price” – the home for sale is sold to the first person that offers the advertised price – or “offers over” – the property is sold to the highest bidder or to the person that is ready to buy it on the most convenient date. When the offer is accepted, it is necessary to present the mortgage application. The sale is finalised when the offer is accepted and the contract is formed. The seller’s solicitor and the buyer’s solicitor exchange missives to sort out all the conditions of the sale. Once the missives have been concluded , the buyer is legally bound to purchase the property and will incur financial penalties for not respecting the contract. The buyer’s solicitor has the task of checking title deeds, drawing up a disposition for the transfer of ownership, preparing a standard security with the mortgage lender, paying the seller with the money given by the mortgage lender.
The towns of St. Andrews – that is known worldwide as the “home of golf” – and Edinburgh – the charming capital city of Scotland – attract foreign buyers coming from Europe and the USA. Overseas investors come for work purposes to Glasgow. They usually rent their home personally or their companies provide for their accommodation.