Scottish letting agents give us their views on their local market.
“After a busy end to 2021, the first quarter of the year has continued in the same vein. Increased demand for 1 and 2 bedroom flats has resulted in overall stock levels reducing across the city. This has led to competition in the market, which has in turn started to result in an increase in rentals achieved. We predict this to continue into the historically busy spring/summer market.”
“The Glasgow market remains exceptionally buoyant, with demand outstripping supply, continuing the upward pressures on rents. Stock availability continues to be a challenge, with tenants remaining in their properties longer. The Covid changes to legislation put in place to minimise evictions were still in place through most of the last quarter but came to an end and it will be interesting to see if this, allied to the cost of living crisis, has any impact upon the market in the coming months.”
“Momentum from Q4 2021 carried into Q1 2022 with strong demand throughout the quarter. The challenge has been to deal with the high volume of enquiries, viewing requests and applications received. High competition in the rental market resulted in less tenancy changes as it became more of a challenge for tenants to find a new property to move to. Most of our stock going to market was new business. We started to receive enquiries from students for the next academic year. There is still a lack of understanding in the student market that the PRT does not allow us to predict availability of property beyond a month. We expect turnover of most student properties in Q2.”
“Q1 has been an exceptionally busy period in the rental market in Aberdeen. With various factors affecting global and local economies, Aberdeen’s market has seen a shortage of supply amidst high demand, especially in Aberdeenshire and some areas in the city. We have experienced record levels of activity and reduced times to let, and there is a huge demand for 3 and 4 bedroom family homes. We have also experienced an influx of international students with hopes of very quick turn arounds. With the increased demand across Aberdeen City and Shire, increased rental values have been achieved for many of our re-let properties.”
“The market in Q1 has been very fast paced with a real rush in demand from tenants across all sectors and property type. The demand for 1 bed city centre properties is back to pre Covid levels now that tenants are seeking accommodation back in the city for proximity to work. Tenants relocating from other cities and countries is also back in full swing now that travel offers more flexibility. Rents are reacting positively with an upward trend in relation to the shortage of supply across all property types. We are seeing the most movement in our portfolio for over 2 years with tenants buying their own properties and a general shift in lifestyle choices so the market remains very buoyant.”
“Q1 2022 has been extremely busy in Aberdeen. Most well-presented properties are renting in under seven days. A lot of properties are also achieving around 5/10% more in rent compared to this time last year. The biggest shortage in supply is in family houses in areas like Westhill. Well-presented houses can often get at least 20 viewing requests. If Covid restrictions remain relaxed and the oil price remains high, I expect this trend to continue in 2022 as local oil firms continue recruitment.”
“The Edinburgh rental market is in a strong, stable condition. There is a far healthier supply/demand balance across the city and it’s so rewarding to be able to provide so many prospective tenants with quality rental properties. We have also been able to implement sensible uplifts in rents for the majority of properties within our portfolio, much to the delight of our landlords. We have seen a significant increase in enquiries from both international and local landlords, looking to benefit from off-market opportunities and a greater understanding of their investment needs.”
“Supply and demand difficulties from last year continue to impact the market at all levels. The student market in particular remains unclear on what to expect during a ‘normal PRT year’ post Covid-19. Ordinarily we expect circa 60% of our student properties to vacate in a typical letting season, and this appears to be the case for 2022. In 2020 it was 95% and 85% in 2021. However, an expected lack of supply this coming summer has seen brisk activity already with numerous HMO’s being pre-let for mid-June start dates. Early indications suggest most of our student property stock will pre-let well and result in minimal voids (less than two weeks). The one and two bed market is equally as buoyant as has been the case for 18 months.”
“A shortage in the supply of rental properties is continuing to be a challenge for Aberdeen renters and we’re seeing strong demand across the board for flats and houses. It is becoming increasingly common for several offers to be put forward for a property and it will ultimately put pressure on rent levels. With many companies in Aberdeen recruiting, following the redundancies they made during Covid, and debate about the North Sea and domestic energy security hotting up, demand is also set to grow.”
“Quarter 1 of 2022 has seen an extraordinary surge in demand across Edinburgh and strong rental levels are being achieved with a short time to let. However, whilst the market is extremely busy and properties are letting faster than ever, there is a worrying lack of supply across the board which should be a wake-up call for the Government. There needs to be more investment in social and build to rent housing, and a deeper understanding of the vital role played by the PRS, encouraging private landlords and investors, not discouraging them. Only this can redress the balance of supply and demand and calm rental levels accordingly.”
“Q1 2022 was a thriving high demand/low stock market. This lead to properties being snapped up moments after coming to the market, and multiple applications for each property. What is interesting is, despite the demands from the market, most landlords have taken a level headed approach and rents haven’t been hiked up, which is encouraging for potential tenants. There seems to be no slowing in the market as we experience more people moving into the city, either relocating with employment or to study. The low levels of stock can also be connected to tenants staying in properties for longer, meaning there are much fewer properties returning to the market. At is stands, it would be likely that the market continues in this vein, especially as we enter the traditional busy periods of the spring and summer.”
“The rental market in Q1 2022 was busy with a distinct lack of supply of property across all sectors of the market, culminating in rental values increasing due to the supply and demand imbalance. The choice available previously isn’t there and tenants are having to pay more for something that maybe not perfect for their requirements. More tenants are staying put and there is maybe not so much transition. More focus is also being made on running costs in the PRS with EPC ratings and performance at the forefront. Fuel costs are on the increase and advice is to take the EPC figure as a conservative target, as this figure will be on the increase given these costs will no doubt rise in the coming months.”
“We’re experiencing reduced numbers of new landlord enquiries compared to this time last year. This is no doubt due to the current uncertainty being created by rising interest rates and high inflation. Portfolio landlords are by nature more inclined to take the longer view so there is optimism that their contribution to available stock will continue to expand. Rents are rising across the board but with wage increases lagging behind, some cooling of the market must take place if a housing crisis is to be averted. It can be hoped that with the regulatory changes coming to the Airbnb market, many owners will seek to convert to the long term letting sector, further easing the pressure on available stock. The student market as always is holding up well and demand for good quality student accommodation in the capital seems largely unaffected.”
“2022 has started on a very high note. We let more than twice as many properties in Q1 2022 compared to Q1 2021. Furthermore, the average rent of these transactions was considerably higher. If we look at the granular data, January and February were busier than March, with 30% more enquiries in the first two months of the year. As oil and gas companies get ready for the usual ‘family moves’ toward summer, this will further increase the demand for high end properties in the Aberdeen West End, Cults, Bieldside, Milltimber, Peterculter and Westhill. Now the attention is gradually but consistently shifting toward energy efficiency.”
“The frenzied tenant demand which we saw in the last quarter of 2021 has dissipated significantly. Applicant numbers per property are down and we now typically have around a dozen properties available. During most of the previous quarter, properties were coming under offer almost immediately, so we would have no available properties most of the time. While there is continuing upward pressure on rents, landlords who set asking rents above prevailing market levels are currently struggling to secure tenants. Although macroscopic data shows a continuing exodus of landlords, we are fielding regular enquiries from investors in search of yield.”
“We’ve had a great start to the year in Q1 2022 - with a steady volume of enquiries and a continuing gap between demand and supply, our team have seen a solid turnover of lets agreed and rents holding up well. Towards the end of the quarter, we’ve noticed a more significant shift in tenant behaviour with an eagerness to return to in-person viewings in favour of video tours. We’re anticipating more of the same in Q2 as we move into the busier spring/summer season.”
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