It has been reported that the Edinburgh’s rental market is allegedly dominated by a small group of so called ‘super landlords’.
A Freedom of Information (FOI) request revealed that around nine percent of the private rented sector in the Scotland’s capital city is owned by just 15 landlords whose entire property portfolio adds up to some 5,300 homes.
One landlord is believed to own around 1,010 properties in Edinburgh and dozens more own over 100 properties each, according to the figures.
The FOI request also discovered that 26% of the city’s HMO properties (House of Multiple Occupancy) are owned by only a dozen of landlords, with each one of them owing over 50 properties.
Taking a closer look at ‘super landlords’
In response to the research, local Scottish National Party MP Tommy Sheppard called for an investigation into the private rented sector and the ‘super landlords’.
He said: “We need to know more about who they are. The council and government needs to look at this in more detail.
“If there are super landlords there’s potentially an argument for ‘super’ regulation. There’s also an opportunity here to work with these landlords to drive up standards and make renting fairer and more affordable.”
He added: “The bottom line is we don’t have enough homes. There’s a case here for looking at a requirement for a percentage of private rented properties to be affordable, in the way that developers have to do for new builds.”
Severe lack of housing stock
Property professionals seem to agree that there is a continuing undersupply of homes to meet high demand.
Braemore Edinburgh noted that due to the “severe lack of stock” observed for most of 2021, “many tenants were missing out on their dream property”, whereas Edinburgh based Umega Lettings recorded “stock sitting at 50% of 2020 levels.”
Tackling short term lets
This already challenging situation is being exacerbated by a high concentration of short term lets in Edinburgh. In response to concerns about the impact of short term lets on housing stock and local communities, the Scottish Government introduced new legislation under which all properties in Scotland will need to obtain a license from local councils by July 2024.
SNP Councillor Kate Campbell, Housing, Homelessness and Fair Work Convener for Edinburgh, said: “All short term lets will now need a license making them much easier to control in terms of overall impact on our housing supply. We’ll also be considering greater planning controls at committee, which is another positive step in the right direction to resolving the issues short term lets are creating for residents across the city.”
