Scottish letting agents give us their views on their local market.
“Reviewing 2016, the year has been as expected with a drop in rent across the board from the all-time highs Aberdeen had been lucky to enjoy a couple of years ago, but demand has remained strong enough to mean property is still a very respectable investment. 2017 will bring us more stability on this front, but the upcoming Tenancy Reform and adjusting to tax changes mean that there is still a lot for landlords to negotiate around and ensuring you have the best advice has never been more important.”
“The last quarter has seen unseasonably high demand for quality rental properties in the prime markets of G1, G12 & G41. A lack of landlords willing to commit to the PRS as a result of the Brexit vote, coupled with the impending tax law changes outlined by the SNP Government, has, from a tenant's point of view, had an adverse effect on the market, with rents creeping higher and fewer properties on the market. When things settle, hopefully landlord confidence will improve and the market will grow.”
“As we head into the New Year of 2017, we have witnessed a superbly dynamic and interesting year pan out within the residential PRS markets. Investors and landlords having ridden the early 2016 waves of market uncertainty, have now adjusted their commercial models and are taking full advantage of the very positive year ahead. Rents continue to grow at record levels, especially in the 1 and 2 bed markets, and tenant enquiries are plentiful with a continuing shortage of quality stock to match ever increasing demand. This rental surge also encourages further capital growth to potential would be landlords.”
“2016 has seen many dramatic developments across the worldwide stage, most of which we're yet to feel the outcome of. What we can say is that 2016 was a positive year for growth in the PRS. The BTL market in Edinburgh has seen substantial growth, with landlords who may have invested elsewhere choosing the strong Edinburgh market to make their investment. The New Housing Bill will no doubt make changes within our industry over the next 12 months, but armed with the correct knowledge and information we would hope that landlords, tenants and agents can work together so that everyone can benefit from these changes. Generally Q4 can be the quietest quarter of the year, but this year has seen the demand remain steady. As we enter 2017 we do so with a strong and growing market where confidence in the rental market remains positive and fruitful.”
“The year ended as we started with extraordinary tenant demand. This is reflected mostly in a rush for 2 bed flats, although 3/4 bed houses are also sought by growing families. Landlords are reflecting demand for 2 bed flats in acquisition targets. This has led to brisk competition among purchasers. So far no evidence of landlords selling in response to the anti-landlord policies of the Scottish and UK Governments, although too early to assess, with the full impact of this yet to arrive. Sales arising generally involve landlords around retirement ages, reflecting a key aim of buy-to-let in providing income then.”
“As the year end approaches the only thing currently reminding us that we are in the middle of winter is the calendar! The rental market is still buzzing away with a great number of new properties being brought to the rental market and each viewing being full. Historically rental values ease back a little around this time of year but with the current housing shortage summertime figures are holding strong, even in December. It is also great to see a large number of new investment landlords entering the PRS who do not seem put off by Brexit, tax changes or the tenancy reforms. Long may it continue!”
“Q4 statistics show a continuing stabilisation in rental values. We are also encouraged to see time to let improving compared to previous quarters. There has been good movement across the market. Properties that are realistically priced have seen good levels of demand. There remains lots of choice for tenants so the key is to be competitively priced as well as presenting a property that is maintained to a high standard.”
“Hit by a triple whammy from three camps – government legislation, taxation and, of course, uncertainty caused by Brexit – 2016 has perhaps been the most challenging year yet for the residential rental sector. Yet the Edinburgh and Glasgow markets have shown their underlying resilience by not only surviving such circumstances but continuing to flourish. Indeed our general tenant applications are running at a greater rate than ever before and the feared fall in demand from other EU citizens has simply not happened. True, executive take-up has slightly paired back but overall the picture is one of continuing confidence.”
“Rents are continuing their upward trend throughout the areas in which The Key Place operates, and time to let and voids remain low. The Central Belt has a chronic undersupply of rental housing stock, as the population continues to grow at a phenomenal rate due to longer life expectancy, a high birth rate, relocation and net immigration. With business analysts suggesting that the Central Belt is set to be one of world's richest business hubs with 7 million residents by 2025, it presents itself as an ideal buy to let investment area.”
“The PRS remains strong with a consistent appetite from sophisticated investors in key rental areas. These new properties are going some way to feeding the increasing tenant demand in almost every area in Edinburgh. The quality of applicants is also very high, with high net worth tenants competing for the better properties resulting in quick time to let (TTL) and strong rentals. We are forecasting for Q1 2017 to be one of the busiest on record with fresh buy to let properties launching in Edinburgh's Quartermile and key streets in East & West New Town.”
“It's quite clear that investors are already looking beyond Brexit and now seem largely immune to the idea of Indyref2 as market fundamentals are confirmed by strong investor sentiment. Market affordability in cities like Glasgow will drive property price inflation into positive territory, probably around 3-5%, with the rental sector following close behind or even matching returns. The environment for property investment, bar any unexpected political or economic shocks in Scotland, is as near perfect as possible particularly as 2017 will prove to be quite the opposite for the property market in London, the South East and many European cities.”
“Demand has remained strong throughout 2016 with our average TTL dropping to just 11 days. Without doubt, lack of supply is having a big impact on the PRS. Many factors have affected the number of new properties appearing: 1) 'reluctant landlords' selling due to recovery of the sales market. 2) Fewer new landlords as increased legislation & associated costs make it appear a less attractive investment. 3) Existing landlords moving properties into the short-term market. However, while renting continues to become a tenure of choice for many, there will be opportunities on offer for savvy investors in 2017 with strong investment returns, minimal void periods and strong forecasted rental growth.”
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