Coronavirus and 4 other reasons to switch from Short Term to Long Term letting in Edinburgh
- Demand and price per night is falling in most short term lets
Coronavirus is clearly going to be a massive disrupter in the Air BnB and short-term letting market. Flights are being cancelled and tourists are more likely to be planning how to look after their children when schools close, than planning any holidays or short breaks.
I received an email last week from a large holiday letting agency in Edinburgh offering 20% off all property daily rates going forward so can only assume they have seen booking fall off a cliff edge.
Even without Coronavirus we have been hearing from industry sources that many short-term let properties are seeing far less demand. They believe this is partly due to a large increase in the number of hotel bedrooms in Edinburgh and the number of student housing blocks being brought online which provide holiday accommodation in holiday periods, especially during the summer when students tend to go home.
Only those properties right in the heart of Edinburgh’s old town or new town tend to be holding up in terms of bookings and price per night. This is largely due to festival bookings but see point 2 below….
- The Edinburgh Festival may well be cancelled
Theatres are cancelling shows and most festivals in Scotland are also being cancelled. No one knows of course, but it is very likely that at least some disruption will occur in planning for Edinburgh’s annual festival events in August.
Even if it goes ahead it is likely to be a heavily scaled down event, so even if you have bookings for your short term let in August will those stays be cancelled and can you afford to risk waiting to find out?
- Edinburgh Council will introduce a licencing scheme, expected in Spring 2021
Whilst details are not confirmed it is expected that anyone renting their property for short term lets in Edinburgh will be required to apply for a licence to include:
- A fit and proper test
- Planning controls to limit total numbers in set areas
- Safety requirements likely to match those already in the long-term letting sector
- Enforcement against properties producing anti-social behaviour
- Demand continues to outstrip supply in long term letting pushing rents higher
Citylets rental reports continue to show rents in long term letting tracking upwards. According to Citylets, rental returns in Edinburgh have risen by well over 50% since Air BnB was founded 12 years. They increased by 3.6% in the last 12 months alone, near enough double the rate of inflation.
- Help long terms tenants find a beautiful new home to let
The lack of properties coming up for sale in Edinburgh continues to drive up capital prices and make it more difficult for investors to buy up new property to let, so supply continues to suffer in the long-term market. Those landlords working in the short-term market now have a fantastic opportunity to help increase supply in the market by switching to long term lets. Short term let property is typically in a great location near the city centre and typically in good condition too so will be a great addition to the long-term market.
Here at Clan Gordon, we are continuing to see strong demand for all types of property to let in Edinburgh and with our firm focus on the city centre we are perfectly placed to hep you make the switch. Call us today on 0131 555 4444.