Scottish letting agents give us their views on their local market.
“We have experienced an extremely busy summer market which has continued to have an impact on the stock levels. With a mix of the student market and the oil industry hiring in Aberdeen again, it is proving difficult for tenants to secure accommodation. This is resulting in increased rentals and quick turnarounds. We expect this to continue into the final quarter of the year, therefore if anyone is looking to invest in a BTL property, this would be the time.”
“In Q3 the market has witnessed unprecedented demand with limited supply culminating in overinflated rents. On the back of the First Minister’s recent decision to cease rent reviews and evictions till at least 31/3/23, we have seen a few landlords selling their properties and leaving the market. This is having a dramatic impact especially at this time of year as students/young professionals/doctors have been frantically trying to source accommodation. We have seen c400 enquiries for 2 bedroom flats in the west end/city centre and this is forcing applicants to look out of town and face a longer commute just to source a property due to exceptional demand. We are however confident that more investors, both UK and international, may enter the market to stimulate the sector in the future, provided there are no more curve balls in the offing.”
“Demand in Q3 was the strongest we have ever experienced. The return of domestic and international students for the new academic year has put significant pressure on the market. Many students have started the term with no accommodation and have resorted to staying in hostels, sleeping on sofas or commuting. An urgent review of government policy is required. We await detailed guidance on how the announced freeze on rent increases and ban on evictions will work in practice. We are currently unable to provide any assurances to nervous landlords as the Scottish Government is working on emergency legislation.”
“A high number of our tenant applications are still being generated from overseas, London and the south. The attraction of high standards of accommodation, safe living environments, excellent quality of life, efficient amenities including easy access to international travel, world class education and special working opportunities are high on the list of reasons. The list is vast and makes Edinburgh and Scotland an attractive place to live. Few can boast lists as long. With recent economic events, we predict the demand for rental property in Scotland will continue to be healthy and strong and we feel very well positioned to match and meet the expectations of anyone looking to make it home.”
“Following on from Q2 2022, the rental market in Glasgow and Edinburgh continues to be extremely buoyant with properties being successfully let at the first viewing. The demand is high and we are encouraging clients to invest as there is currently not enough properties on the market. Our student lets are fully occupied and we do not anticipate this to change, especially as Glasgow University have advised students not to enrol if they have not secured accommodation. The recent announcement from the First Minister for Scotland imposing a ban on rent increases and evictions has raised questions but we are remaining positive.”
“Demand has never been so high with literally hundreds of people vying for the limited properties available. Rental values are up and occupancy has never been so high. We are working tirelessly with our investors to try and bring new stock to the market to offer more people homes, but the appetite is far greater than can be sated. With the recent announcement on rent freezes and eviction bans, it will be interesting to see what clarity is given on this moving forward and what impact it will have into Q4 2022 and Q1 2023. Time will tell, but Q3 has been history making in more ways than one.”
“The Glasgow market continues to be driven by low supply and overwhelming demand driving up rents. It is this pressure that seems to have prompted the recently announced rent freeze. It has been a stressful time for tenants, especially students with start dates for courses and yet no accommodation, and there is no end in sight. This imbalance between demand and supply has driven up rents on newly listed properties (which are not affected by the announced rent freeze) and whilst we maintain this imbalance, we will therefore continue to see the headline figure for average rents rise despite the freeze.”
“We have seen an exceptional growth in activity this summer. The demand for properties of all sizes has been on a seven-year high. Long lists of waiting applicants keep fuelling this trend. The number of applicants for upper end properties in the West End, Cults, Milltimber, Bieldside, Westhill and Bridge of Don is particularly high when compared to the number of properties available in these areas. Rents consistently continue their uptrend across the board. There are clear indications that the economy of Aberdeen, ‘The Energy Hub’, is being fuelled by a new mix: ever growing activity in the renewable energy sector, as well as the renaissance of the oil and gas industry.”
“The market for Q3 has been continually fast paced and in keeping with the pace we saw in Q2, with a real rush in demand from tenants across all sectors and property type. The chronic shortage in available rental stock across all sectors of the market is causing real pain for tenants who are trying to find a long-term home in the private rented sector, and when viewing, we are increasingly seeing tenants in a desperate or very temporary state of living, often with nowhere long term to live. A challenge for us as agents currently, is to ensure that we match the right tenant to the right property to ensure a successful tenancy for both landlord and tenant – a significant supply of available tenants is good for landlords and is keeping rents punchy just now, but it can breed an environment of tenants taking whatever they can get – and that is often not the best outcome for landlords or tenants. The market remains very buoyant for landlords and we see rents holding strong into the new year.”
“Aberdeen has had a very busy month this September and stock across the city are very low. There have been a lot of international students looking to get accommodation for the start of the academic year and demand doesn’t look like it’s going to slow down soon. Landlords are being hit by several pieces of bad news - with the prospect of higher than anticipated interest rates, the eviction ban and rent freeze. With change now a constant I’m not brave enough to make any prediction on the future just now.”
“Q3 has been very strong with the highest demand for properties we’ve ever seen and rent levels have remained very strong too. Cost of living and emergency legislation is likely to dampen rent inflation but the PRS is needed more than ever as demand continues to escalate across all tenures. New landlord investment has been affected but property assets continue to perform well, with no sign of market exits by clients. STL legislation is likely to bring some properties across to the PRS but will have limited effect on reducing wider tenant demand for residential properties, so rents are likely to stay robust in the foreseeable months ahead.”
“Dundee is still seeing huge demand for all types of properties and Time to Let is rapid. We continue to take on new properties and new landlords. We are not yet seeing large arrears in rent accruing due to the increase in living and fuel costs, and hope that this trend continues as we are aware it will not be possible to serve notice once the eviction ban comes in, although I believe the government do not as yet have a date or method of bringing this to action and landlords need to know this and be made aware if proposed ban affects applications already submitted.”
“Adverts in Edinburgh continue to attract what seems unlimited enquiries from many desperate people looking to secure a home. Whilst the new licensing regulations being launched on 1 October 2022 for short-term lets in Edinburgh are onerous for those investors and tourists, there is a great opportunity for investors to switch to long term letting for stable, good yields, perhaps less hassle and if many do this, it will hopefully alleviate some of the supply issues in rented homes.”
“Q3 has seen a continuation of increased demand across the city and shire. We have been in-undated with enquiries and applications seeking accommodation. This has been fuelled partly by lots of international students and families relocating to Aberdeen and looking to rent whilst studying here. We have also seen lots of activity for quality family homes with oil and gas companies moving employees here for long term contracts. Supply continues to be an issue to meet current demand and the uncertainty that the recent rent freeze and moratorium on evictions pose, continues to create further confusion to home owners.”
“We have found that tenant demand is still high which results in rents increasing and time to let reducing. The recent Scottish Government announcements have led to higher rents in the short term due to the lack of supply and the potential risk of the rent freeze continuing beyond the initial period. It may be that tenants will not move as often because they face more competition for properties. What is very hard to predict is the market reaction following the new chancellor’s recent statement and the surrounding financial activity.”
“Tenant demand continues to outstrip supply in all Scottish cities, resulting in rent increases. Long-term landlords are leaving the sector and combined with long-term tenants contribute to this imbalance. This being said, there are still opportunities and ways to help by new investors and landlords if they buy the right property in the right area and expect a decent return on their investment.”
“From our experience demand is far outstripping supply currently in the Edinburgh market. We are visited daily by potential tenants who are struggling to find a property, most seem like great options, but we unfortunately can’t place them all due to a lack of supply. Government interference in landlords’ ability to run their properties is having a negative impact - some landlords are expressing concerns at the legislation being proposed by the SNP and Green coalition and considering leaving the market which will only add to the undersupply issue.”
“The private rental market in Glasgow is in failure mode, with demand rising while supply is shrinking. The net result is that there are not enough properties available for increasingly desperate tenants. We have seen overseas students having to defer their studies for a year because they cannot secure accommodation. The recently introduced rent freeze is causing more landlords to exit the market. Those who remain are setting advertised rents higher than normal when tenants serve notice, since they are prohibited from raising them during the tenancy. Perhaps falling real house prices will prevent some landlords from selling over the winter.”
“In Q3, the PRS has been dominated by one major theme – a chronic shortage of rental property unable to meet the spiralling demand. Working in the Edinburgh rental market for over 14 years I have never quite known such a disparity between supply and demand. 1Let has never had so many properties under management but the soaring demand from all tenant classes has meant the supply of available property has not been able to meet the needs of the market. Additional rental stock is so desperately needed, however disappointingly, the recent announcement by the Scottish Government is likely to deliver the exact opposite.”
“As can be expected for this time of year, the surge in enquiries from potential tenants was phenomenal, particularly from students. Unfortunately, this only highlighted the shortage of stock available. The story remained a familiar one as in previous quarters with demand drastically outstripping supply. Global and economic crisis are leading to a more cautious approach from potential buy to let investors, but with demand seeming to be higher than ever, I would hope the rental market is still an excellent place to invest.”
“During Q3 we have seen a marked increase in new properties coming to market. This encouraging sign may suggest that despite the uncertainty that persists, increased rents and soaring demand continue to draw investors both old and new to the sector. Tenants are clamouring for property across the spectrum. We are in somewhat uncharted waters as the Scottish Government continues to deliberate on how best to respond to the cost of living crisis, but to date rent freeze and eviction issues are not putting the brake on a sector that is gathering momentum once again.”
I am a Tenant Landlord
