Scottish letting agents give us their views on their local market.
“As 2018 beckons and we look back over the past 12 months there has been increasing positivity about the Aberdeen market through the 2nd half of the year and a growing confidence that Aberdeen is moving forward. While there is still a lot of choice for tenants, there is a solid demand that we expect to see grow. The new tenancy regime came into effect on 1st December and the model tenancy has been fairly straightforward to use, but we are already seeing landlords looking for more detailed information and thorough referencing about potential tenants now they’ve lost the right to terminate with no reason.”
“2017 has been a busy year in the lettings business with the Lettings Agent Registration coming into force at the end of Jan 2018 along with the Code of Practice. Mandatory staff training has been completed and qualifications gained. After a buoyant market in Q4 we anticipate a busy start to the year going forward and look forward to the challenges ahead. We anticipate that there will be many opportunities for the diligent letting agent to grow as some may find the legislation and compliance issues over-demanding and decide to sell up. We have seen many landlords deciding to offload properties, but we have also had a big upsurge in investors seeking opportunities which is very encouraging going forward.”
“Q4 saw a natural slow-down in movement across the market, with numbers reducing in terms of NTQ’s from existing tenants, and new tenant enquiries. The counter to this was new landlord enquiries being more prominent than in Q3 which shows investors are still eager to take advantage of a rental market that is continuing to trend returns upwards. Suitable chat continues around new tax implications for PRS landlords and of course the new PRT tenancy framework, but landlords have in the main been positive and receptive to our view that the property market in Edinburgh will continue to thrive given the demographic and economic successes that make Edinburgh such a vibrant place to live and work.”
“Confidence in the Scottish property market continues unabated. Being in acquisition, investment, resale and the PRS we see all sides of the market playing out. Rents are still rising and units are letting faster than any time I can remember and both domestic and foreign investment appetite has not waned against the backdrop of new regulations and higher inward costs. Given the investment alternatives, overall, Scottish property remains a solid place to invest, especially as yields are continuing to perform well. Our predictions from earlier in the year have proven to be accurate.”
“As 2017 reaches its end, the rental market has ended on a positive note for Q4. Whilst we would normally consider the last quarter of the year to be a fairly quiet time, we have seen demand from tenants remain high and rents continue to increase. The Buy to Let market is particularly buoyant with potential investors looking to move forward and have plans in place for 2018. Whilst the economy and politics may not be predicable, and this will have an effect on the property market, I am delighted to conclude that Q4 was a stable and positive end to 2017.”
“Rent levels in Edinburgh continued to increase and break records as demand for quality professional property continued to outstrip supply. Introduction of the additional dwelling supplement and tougher rules on tax relief for landlords reduced the number of properties in the market which caused further heating of market rents. In 2018 build-to-rent blocks will provide additional quality accommodation in prime locations which is welcome news for tenants. There is also the possibility of Edinburgh becoming a rent pressure zone which will provide more security for sitting tenants but won’t affect market rent levels.”
“Northwood Aberdeen has experienced a very busy end to 2017, which is very encouraging. There continues to be rental price stabilisation in the Aberdeen market. Demand remains high for top quality properties finished to a high standard, however, there still remains a plentiful supply of properties, meaning that tenants continue to have lots of choice and landlords must remain competitively priced. All signs are encouraging for continued stability in the Aberdeen market, with lots of positive talk for the city as we approach the spring of 2018, which is good news for all concerned.”
“Q4 of 2017 has certainly been a memorable one, thanks to the introduction of the PRT on 1st December. Edinburgh landlords have realised the new regime brings significant benefits – including easier, and potentially faster, eviction if they wish to sell or move in themselves – so investor interest has not been affected. Even the possibility of rent pressure zones is not proving to be a hindrance as landlords would still have been able to increase rent by around 4% this year. 2017 has been a strong year for Edinburgh lettings, we predict that this trend will continue into 2018.”
“Q4 continued to see decreasing TTL’s and rising rents in all areas and for all sizes of properties. There is now a ‘1 bed mini-market’ within the wider market. 1 bed TTL’s are less than 7 days; rental growth continues to hover around 5.5% YOY versus that of larger properties which show an inflation tracking level of circa 2.5% YOY, except for student properties where strong demand pays top prices for quality property. Rent caps are unlikely to solve the problem and do not impact on open market rents. Investors continue to buy and let.”
“The PRS market in Central Scotland is interesting at the moment. Overall, the market is buoyant but the reasons why are a wee bit different from before. Less tenants are currently looking to move partly due to Brexit uncertainty and partly because, given the recent increases in rents, people are reluctant to move to new properties where rents are higher. However, we are not seeing the much trailed sell off of rental properties as a result of the recent tax and regulation changes: I suspect because landlords are recognising that the returns from the PRS market are indeed still good!”
“We have enjoyed another constant and healthy quarter. The positive and enthusiastic news that is being generated from Edinburgh is having a global reach. We know this by the applicants submitting their residential curriculum vitae to our office wishing to secure accommodation. Edinburgh is becoming the most searched city for investment in the UK and has overtaken London. Edinburgh’s tech industry is fizzing and the developments such as Quartermile, St Andrew Square, The Haymarket and rumours of the tram network being extended to Leith and beyond is not causing ripples of interest but waves.”
“The final quarter of 2017 saw a good deal of activity at all levels in the market with good returns rental wise and shorter time to lets across the board. This in turn has shown increased demand for investments across the capital with more and more buyers showing interest. This spells good news for the market where demand still outstrips supply, something the Government must address sooner rather than later. Another area for concern is the holiday lets market which still remains unregulated and is draining properties from the Private Rented Sector.”
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