Scottish letting agents give us their views on their local market.
“Q2 has been very busy with lots of positive movement and some record times to let have been achieved in isolated cases. Enquiry levels have increased in particular for high quality accommodation and we have seen competition between tenants seeking the best property. Overall we are seeing a reduction in property stock levels as we continue to experience an increase in viewing activity and the number of properties let. Both contribute to the continuation of price stability in the Aberdeen rental market. In general terms we have seen much more positivity across the city. An increase in activity in oil service related business is bringing more staff to Aberdeen that require properties to let. In addition to this we have seen a positive flurry of activity with students looking for accommodation for the new academic year.”
“The second quarter of 2019, the summer period, has seen a slowdown in the rented sector across Glasgow. We’ve seen a substantial drop in enquiries and viewings, and have found properties being void for longer than normally anticipated. I suspect that this is due in part to the ongoing saga of the UK Government, Brexit & Independence. Until such decisions are made as to the future of the UK and Scotland there has been a reluctance of Domestic & International Businesses relocating staff to Glasgow and this has impacted the City Centre & West End markets significantly. Student lets too have been impacted by the introduction of the PRT, which is ONLY applicable to private rented landlords – not student housing complexes.”
“Looking back over Q2, what is most notable is the rapid and positive shift in the volume of properties successfully let, particularly over its last 2 months, in comparison to the same period in 2018. A higher level of stock at the beginning of Q2 was met with high demand and enquiries continue to increase beyond their usual levels. We did note TTL climbed slightly as a result in April, rental values also rose however, which implies continued trust, reliance and confidence in the Scottish PRS to provide quality homes to its residents, and exemplary strength in the industry supporting it.”
“Our 2nd quarter has been just as buoyant as recent years, with us seeing the typical uplift in demand around the spring. We see a notable change in the pace of the market due to the PRT notice period – which makes us react to market conditions quickly, in order to re-market properties promptly and minimise voids for landlords. Competition across most market sectors is still very healthy so rents need to be competitive and properties need to be presented well to attract interest. Changes afoot to legislation for the short term market are seeing landlords revisit their letting strategy, leading to an increase in enquiries from landlords considering a change back to long term letting.”
“After a reasonably steady Q1, the leasing market in Aberdeen has been showing signs of further improvement, with the city centre recording an increased number of enquiries and viewings. Whilst rental levels are still fairly stagnant on the whole, we have been able to achieve higher rents for some properties that have been maintained to a high standard. We are also witnessing decreased void periods which can be argued to be more important than rental levels. Our stock remains healthy, new properties are being placed on the market daily with majority generating interest.”
“The Edinburgh market is still extremely strong with a lot of properties available for let. There are also a lot of tenants looking for new homes though, so this means that properties we have marketed in very central locations are receiving good interest in a short period of time and landlords are receiving a number of applications to consider. Properties even slightly further out of the city centre are taking slightly longer to let due to the volume available and the apparent preference of tenants to be as centrally located as possible, making the market a bit more competitive in those areas.”
“Q3 has again been very busy time for Aberdein Considine with high levels of applicants for every property. There has been plenty of activity throughout the city with the number of tenants outstripping supply, which will no doubt be the main reason for the increase we have seen in monthly rents. If this trend continues, against a backdrop of more stringent regulations for buy to let finance and tax changes coming into force, then it is likely that supply will decrease among all types of property, leading to greater competition for the best homes to let and therefore higher asking prices.”
“There is a vibrant rental market in Stirling driven by a cross section of interested parties from students looking for flats in and around the city centre to professional couples and families having sold and awaiting new properties to purchase coming to the market. Demand for traditional and modern flats in the city peaks and troughs throughout the year depending on the volume of students and tourists during the especially hotter summer months. Stirling is on the doorstep of major attractions such as the Trossachs Country Park, Stirling Castle and Bannockburn, scene of the famous battle. The city also benefits from having easy accessibility to Glasgow and Edinburgh and a bustling city centre especially during the summer months where there is a very cosmopolitan culture.”
“Coming into the second half of the year we are seeing a reduction in TTL and an increase in rents. The bread and butter 1 and 2 beds remain the quickest to let and we continue to grow our portfolio with good quality properties across central Scotland. There is a real appetite for growth within our portfolio at the moment with our investors keen to buy as the confidence in the PRS continues. We expect a strong 3rd quarter and look forward to exceeding our clients’ expectations in the months to come.”
“During the last quarter we have seen the full extent of the PRT in action with many, mainly student, tenants exercising their rights to terminate their tenancy on 28 days’ notice. This has culminated in a large increase in stock currently on the market. Many of the incoming tenants are still not requiring accommodation until the new semester starts and we are seeing a potential shorter letting window which may affect landlords’ occupancy rates.”
“The rental market in Aberdeen has been turbulent of late, but we are noticing a continued reduction in times to let, particularly with 1 bedroom properties. As ever, well presented and accurately priced properties are seeing the most interest and applications, and we look forward to continuing this slow but steady and positive trend into the next quarter.”
“Q2 saw business as usual in the 1 and 2 bed markets, with tenants staying longer than previously and rents increasing steadily as demand marginally exceeded supply, albeit in a more price sensitive market. In the student market, Q2 saw the first real impact of PRT as graduating/leaving tenants exercised the 28 days’ NTL, with 31 May being a popular end date. Most properties re-let from June, with some peripheral properties taking slightly longer to let. Fall throughs were higher as some tenants shopped around causing remarketing of some properties. This and other indications suggest that many students expect a flood of properties to market in late summer with 1 Sept availability by assuming that 28 days is the lead period to start searching.”
“The Perth rental market has seen a resurgence in activity after a relatively quiet spring period. 1 and 2 bedroom flats continue to rent well and although there are no signs of rental incomes increasing, demand is matching supply which limits void periods for landlords. There is a shortage of larger 3 bedroom and 4 bedroom houses to rent in the Perth market and demand continues to outpace supply for these types of properties. The summer market continues to show good levels of activity across the market and if this activity continues to grow, rent increases will surely soon be on the cards.”
“Q2 2019 has been encouraging. We have had a lot of properties getting more than one offer and properties don’t seem to be on the market as long. However, Aberdeen is still a very price sensitive market, landlords need to be careful with their asking price. HMO properties don’t seem to be getting the same level of interest as they once did, however, they still have a steady demand at this time of year despite a large number of purpose built student accommodation buildings being available across the city.”
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