Scottish letting agents give us their views on their local market.
“Q3 has been busy with students moving in ready for the new semester, an intake of junior doctors at the hospital and relocation companies searching for, not only high-end family homes, but two bed properties for their clients within the oil and gas industry. Properties are receiving multiple applications as demand has continued versus a declining supply. Rent increases implemented since April are now taking effect so occupied properties become more in line with actual market values. We have seen an increase of new landlords coming to the market during August/September to replenish stock levels. There will be a natural slowdown into Q4, but would expect activity to remain steady.”
“In recent months Kirkcaldy and the surrounding areas have seen a huge demand for rentals. It seems that there are not enough properties out there for the number of people looking. Our main attraction which draws people to the area is the Victoria Hospital for employment. On many occasions, we meet doctors and nurses looking for knowledge of the area and to find a suitable home close to their place of work. One unusual scenario that we have dealt with was a potential tenant offering £500 more than the advertised rent and 2nd to that was £150 more; this is rare but shows the demand in our area.”
“Rents in the Leith area continue to rise and landlords continue to leave the market, reducing the supply of rental stock in the area. This is likely due to the uncertainty in the legislation, together with the ongoing negativity towards the sector, which may exacerbate affordability issues in the long term as fewer properties are available to meet the growing demand. This is disappointing as we believe private rental properties continue to provide excellent accommodation and options for tenants seeking flexibility, variety and quality in their housing choices.”
“It is no surprise that we have seen the usual summer boost in the lettings market in Edinburgh, with demand outstripping supply and rent levels continuing to rise in these busy months. Though we are now starting to see a relative slow down as we head deeper into autumn. The urgency and general panic amongst tenants has started to fade and fewer enquiries are coming through for the higher rent level properties. That said, demand is still strong, particularly for 1 and 2 bed properties keenly priced. The headline of high rents is positive with ensuring efficient, clean and well maintained properties are offered to attract the best tenants at these rent levels.”
“Q3 has seen demand stay strong across most property sizes, but with certainly more discerning tenants looking for quality properties & fixtures and all at keener pricing levels. The longer-term lag effects of the cost of living are more of a factor than previously necessitating sensible pricing to minimise any void period, particularly for new market entrants. HMO’s are all but fully let by now, although any remaining larger (5+beds) student flats may see longer ‘time-to-lets’ now that semesters have commenced again. Overall though, the Edinburgh rental market remains strong, as attention begins to focus on the 30th October budget and any new challenges therein for Edinburgh landlords.”
“Demand for good quality rental properties in central Edinburgh and surrounding areas continued to increase in Q3 2004. It will be interesting to see the official statistics. The continued increase in rents is a strong indication that the current Scottish Government policies are causing a severe imbalance between supply and demand. It seems clear a sustainable housing policy is required which addresses the interests of everyone. We are seeing an influx of new landlords braving the uncertain legislation with most investors focusing on the more profitable HMO market which can be further bolstered with income from the Edinburgh Festival, with bookings coming in already for 2025.”
“In Q3, the Edinburgh rental market saw notable rent increase, reflecting strong demand. Time to let remains robust, with properties renting relatively quickly. Lower priced properties are in particularly high demand, likely reflecting cost-of-living pressures. While enquiries for higher-end properties have slowed, indicating more selective tenants, overall interest remains steady showing sustained interest across the market. This shift suggests tenants are being more selective, particularly at the higher end, but overall demand continues to support growth in rental prices.”
“Another busy quarter in the PRS with the latest student intake at the forefront. Many foreign students have arrived and are willing to pay a premium for their accommodation through agencies which offer company leases (12mths) as opposed to a PRT (28 days), providing landlords with premium rents and security of 12mth tenure which to some is very appealing. Many other tenants are being forced to seek properties further away from the city in outlying areas to suit their budgets. We have witnessed many traditional investors now exiting the market as they get to the end of their letting journey but also a new breed of investor entering the market seeking to build portfolios.”
“1Let experienced a very busy third quarter in 2024. Demand for quality, affordable rental property remained high, compounded by the student market ramping for the 24/25 academic year. Due to the competitiveness of the market we found prospective tenants applying for a number of properties; playing the numbers game to increase their chances of securing a home. 1Let saw new and existing landlords purchasing new properties to either begin their investment journey or add to their portfolios. Other landlords decided to exit the market and sell their properties, mainly due to the increasing burden being placed on them by government and taxation policy but it seems that as one exits, two enter the market.”
“Edinburgh will continue to be a draw for people to come to live and work in the city which adds pressure across all housing tenures in the city. Competition levels across all locations remain extremely high with multiple tenants applying for an advertised property. That said TTL figures have increased slightly which does point to a slight cooling of the market. Overall, the rental market continues to be shaped by a supply/demand imbalance which will be a key factor underpinning continued rental growth across the city over the short to medium term. But the rates of growth we have seen are ultimately unsustainable and questions around affordability will need to be answered.”
“The rental market remains starved of available property, driving rents ever higher in the capital. Many single would-be tenants simply cannot afford a one bedroom flat in the city. Even for those who can, many are disappointed because of the sheer number of applicants for every available property. As ever, the greatest competition is for one and two bed flats in desirable areas of the city whilst larger non HMO properties anywhere can be a challenge in a shrinking family market.”
“The Edinburgh rental market has continued its upward trajectory this summer, with one-bedroom flats now commanding average prices of between £1,000 and £1,200 per month. This surge in demand has led to properties being snapped up quickly, often within the first viewing. Two-bedroom flats, particularly in sought-after areas, have reached record highs of £1,800 per month. The competitive rental market has seen a shift in the student accommodation sector. While students previously faced challenges in securing lets due to limited availability, this year has witnessed a slight easing of the pressure. Some HMO rentals have lowered their prices towards the end of summer to attract tenants.”
“Looking back at previous years comments the same can be said this year - Q3 has been exceptionally busy with changeover of tenancies, TTLs remain low and rents high! With investment interest growing further, we are bringing quality stock to the market. The trend of demand outstripping supply remains with nearly 100% occupancy across our portfolio. Rent increases, with the new calculation permitted, have been met positively by clients and mostly with understanding from tenants. Hopefully this will create more of an equilibrium moving forward.”
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