Scottish letting agents give us their views on their local market.
“Q4 has continued to demonstrate a steep upwards trend in decent PRS property being oversubscribed and in strong demand across the region. The final month of the year has seen the January student intake, fill previously unlet HMO property - an enormous relief for our traditional student property investors who have suffered throughout the previous quarter. A new approach in the run up to the next academic year is required, including, but not limited to, the appraisal of asking rents to reflect the now burgeoning supply of bespoke accommodation available across the city.”
“The market has remained busy for longer this year than was previously the case, with property still attracting interest at time of writing. There does, however, seem to be a slight softening in rents. Larger family properties are taking a while to find suitable tenants which is understandable at this point in the calendar but Edinburgh’s relentless clamour for new stock continues to fuel a thriving sector, which potentially next year, will draw in more new investment. As always, location is the number one priority for most tenants.”
“2024 has been a fantastic year in letting for the Flat Company. Rents have continued to increase but tenants are happy as long as the standard of the property and management is in keeping with the rent. Edinburgh continues to be a great place for landlords to invest with the easing of the sales market meaning the investment properties can achieve over a 9% gross yield. 2025 promises to be a fantastic year for TFC as we are turning 25, taking on sales and re-branding. Lots of excitement to come!”
“The Edinburgh market is experiencing its seasonal shift into a slower, more tenant-led phase. With stock levels higher than usual and demand tapering, landlords face the challenge of balancing reduced void periods, securing strong rents and attracting reliable tenants. This is made even more complex by impending rent controls and increased ADS, which may limit rent level flexibility. Navigating these challenges demands expertise and responsiveness. Now, more than ever, it’s crucial to work alongside an experienced and proactive letting agent.”
“As we head towards the end of 2024 the market has taken a quick turn in the lead up to Christmas with tenant enquiries slowing down significantly across properties above a certain rent threshold. Demand for 1 bedroom and sub £1k per month rental properties still remains high with these properties letting very quickly, typically less than a week. We are also seeing high levels of interest from prospective tenants looking to move in the New Year, indicating 2025 will start strongly and we have seen marked upturn in interest from landlords purchasing rental properties.”
“Since April, we have rolled out moderate rent increases. The vast majority of tenants have accepted the modest increase, safe in the knowledge that a similar property on the open rental market will be much more expensive. As spring comes to an end and we enter the summer months, tenant enquiries and viewings are continuing to ramp up so we expect a busy season ahead. As demand continues to increase, rents are increasing too. In regard to new business, we were delighted to add a string of quality properties to our portfolio. Some existing landlords have left the market but this has slowed somewhat thanks in part to the stable Bank of England interest rate and decreasing inflation.”
“Seasonal slowing… what seasonal slowing! We have had an unusually large number of tenants moving house this quarter, so lots of move outs and move ins. Properties are still renting well in the mid-value section of the market. They are still going quickly and at strong rents for our clients. Client investors have completed purchases of a large number in the latter section of the quarter adding excellent stock to our growing portfolio. Demand is high, stock is low and the government’s latest increase to ADS will perhaps put more pressure on stock, but the show will go on – people depend on it.”
“While rental prices in Scotland continue to rise, albeit at a slower pace than before, the region remains one of the most affordable areas for tenants within the broader UK. Looking ahead, market fundamentals point to sustained strength, driven primarily by an ongoing undersupply of housing across all tenures. This limited housing supply is expected to maintain upward pressure on rents in the short term, however there are signs that affordability constraints on prospective homebuyers may ease and we anticipate some relief on the pressures faced by the Private Rented Sector.”
“Q4 has seen a real slowdown in terms of tenant demand similar to the slowdown we saw in 2023. Unfortunately the drop off in demand has been more pronounced this year and arrived earlier than last year which we believe shows the market finally returning to some seasonality that was common pre-Covid. The consequence of this is pricing on newly listed properties needs to be very competitive with some re-lets going up at a lower rent than was previously achieved. This is new territory but it must be remembered that many previous lets began in busier months of the year during and through two years of incredible rental growth.”
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