Scottish letting agents give us their views on their local market.
“Q3 has been a very busy period with nearly double the activity compared to this time last year. Times to let continue to improve with some properties letting within days of marketing, as well as record levels of enquires being received over the summer period. Now that the market has stabilised somewhat, we have also seen a new wave of investors looking to buy portfolios, seeking out new opportunities in an increasingly busier market. Stock levels continue to reduce balancing up the supply and demand which will have a continued stabilising effect on price and provide a healthier market.”
“With the summer coming to a close, the rental market in Glasgow is still showing no signs of slowing down. The last few months have seen a surge in rental prices, with the number of tenants looking to rent outweighing the available stock. The main beneficiary of this buoyant market must be our landlords, who are not only seeing an increase in their rents, but also having the pick of the bunch when it comes to selecting a tenant. Most of our properties are being taken at the first viewing, cutting down the vacant periods between tenancies and giving landlords peace of mind that they’ve got someone else lined up.”
“Q3 of 2019 has been a particularly busy period for 1LET. The effects of the PRT on the student market has been laid bare, with tenancies ending/starting over the whole period rather than the historic September time. 1LET have experienced a noticeable increase in the amount of enquires form very worried students finding it difficult to secure a property for the coming academic year. It would seem the removal of a defined tenancy end date is making life much harder for Edinburgh’s student population. On a broader market note, demand continues to outstrip supply with viewing requests for one and two bedroom properties at a near all-time high.”
“With this being the first full year of dealing with HMO’s under the PRT lease we have found that many students delayed looking for flats thinking there would be a more plentiful supply after the summer. In reality there is still a large shortfall in supply of this kind of property and we have found that the vast majority of our HMO’s have let easily, and with good rent increases. The main difference being under the PRT, there has been a vast increase in changeovers taking place with existing tenancies.”
“Q3 2019 has been very encouraging for Aberdeen, this may be due to a steadier oil price. Properties have been getting more viewing requests and the average time to let a property is reducing. Some properties have even been renting in a few days if they are priced correctly and well presented. Properties in below average condition will continue to struggle. In Q3 there also seems to have been an oversupply of HMO properties. Landlords must continue to invest in their rental properties to ensure empty periods are kept to a minimum.”
“The Edinburgh rental market has continued to be resilient in the face of the ongoing wider political and economic turmoil we are witnessing. Demand levels remain strong for good quality rental accommodation and as a result time to let numbers remain stable and rents have shown some uplift. The summer HMO rush is now behind us and the student market seemed to perform well. Through communication and professional management, we have been able to mitigate some of the negative impacts of the PRT on this niche market. We are also seeing no reduction in interest from individuals looking to invest into the residential market in the city as rental yields remain strong.”
“During the summer months, rental within the centre of Paisley and Renfrew is of high demand, however, the demand for rental outwith the town centres in Renfrewshire has increased in recent months, and brought with it longer term lets and a variation in tenant circumstances. Terraced, semi-detached and detached properties have become more and more popular, in turn bringing in higher rental figures, which is against previous market findings. With the sales market improving in recent months, we have seen some landlords decide to sell up and exit the lettings game, however, on the other hand we are also seeing an increase in new buy to let investors entering the market and current landlords trying to grow their portfolios. Thankfully, thus far, Brexit, nor recent legislation and tax changes have detracted these landlords from investing in the private rented sector.”
“The Glasgow rental market is increasing month after month, with the student market growing at a faster rate than first thought. Rents during the last ten years within Glasgow and the surrounding areas have now doubled. Very strong and fruitful time for BTL.”
“The Perth rental market continues to be strong into Q3 with demand outstripping supply through all areas of the market, from one bed bedroom flats to executive family homes. This demand has led to a slight increase in rental values and plenty of viewings for each property. There are no signs that this pace will decrease into the winter market and new properties at all levels of the market are likely to continue to be popular. Aberdein Considine’s Perth landlords should have no hesitation in looking for a tenant for any of their empty properties in the foreseeable future. The market remains strong.”
“The Citylets figures further solidify our own findings at Capital Letters through our offices in Aberdeen, Glasgow and Stirling, where we have continued to see rents increase steadily each quarter since Q1 2018. This is due to an ever-increasing demand for rental properties as the population continues to grow, as well as a new-found consumer confidence in the Private Rented Sector which is, undoubtedly, down to the increased legislative requirements for rental properties and letting agents. All of which is underpinned with the First-tier Tribunal in Scotland, giving that added peace of mind to landlords and tenants alike.”
“You could be forgiven for thinking the housing market in general would be impacted given the current economic uncertainty surrounding Brexit, however, I’m delighted to report that we have only noticed increased activity in letting within Q3 of 2019. We have seen notable growth in the number of landlords buying investment properties. We are frequently seeing landlords who are looking to secure a second and, in some cases, a third property. Furthermore, we have also noticed a significant increase in the number of people looking to invest in property and become landlords.”
“Demand as always at this time of year has been excellent and a strong 3rd quarter allowed us to let our properties exceptionally fast. We are working with new and existing clients to grow further so we have more stock for quarter 4. Rents have shown a steady increase and TTL’s are well below average. As our portfolio grows across central Scotland, we have seen a greater interest in some rural communities and have been able to let properties quicker than anticipated for our clients. We look forward to the challenges ahead and to getting more quality properties to the market.”
“At GPL we have seen a steady stream of new properties coming on to the market in the last quarter and this added to increase in re-lets due to the traditional student intake period has resulted in a very busy period in the PRS. The Time to Let for better quality stock has been reduced with demand exceeding supply, while properties in more outlying areas are taking slightly longer to source suitable high calibre tenants. We are looking forward to the final quarter where some housekeeping can be caught up on and systems can revisited and implemented.”
“Q3 saw us reach our busiest on record for student turn over, as we saw every single one of our HMO student properties turn over in summer 2019 – not the norm for our portfolio. A symptom of the new PRT notice period, along with high student rents mean that students are not staying on over the summer in order to save money on rent. This has seen all of our HMO student stock re-let earlier in the summer for the 19-20 move in, in order for us to keep voids to a minimum. Students have been taking tenancies from July and August so they can secure the property they want, so demand has been as strong as ever from students, but rents have levelled off somewhat as a consequence. A notable change to the student market as it settles into the new tenancy regime.”
“This summer saw some the strongest demand for property in Aberdeen since the oil price crash, so the real test will be whether this trend will continue, and thankfully we are still seeing the total number of properties available coming down. Having sustained a drop of over a third in rental values over the last few years it will be a long climb back, but with the right advice landlords can be reasonably confident of keeping void periods to a minimum. Tenant’s expectations are high and now that the Private Residential Tenancies are bedded in and the Agents are being held more accountable under the mandatory registration scheme and the Code of Practice, excellence is rightly expected in all aspects of the Leasing Industry to stand out from the crowd.”
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