Investing In property in edinburgh
The picture looks promising for Edinburgh’s landlords with the average rent hitting an all-time high for the second quarter in a row, according to the final Citylets rental report of 2021.
But a shortage of available properties means the landscape is less positive for tenants looking to rent in the city. Stock levels are at an all-time low across the whole of Scotland, and the report warns that planned government legislation designed to improve the standard of properties for tenants could further exacerbate the situation.
Surge In Edinburgh Rental Demand
The residential lettings site’s quarterly reports analyse market activity across Scotland, with detailed breakdowns for individual towns and cities. After a dismal start to 2021, Edinburgh has bounced back and is now top of the table for rents and time to let.
Jonathan Gordon, director of Edinburgh’s leading letting agent Clan Gordon, said: “We have seen the Q3 spike in demand for quality properties continue throughout Q4. As such, an uplift in rents has certainly been achievable for properties let in good condition. We have received a significant number of enquiries from landlords looking to switch to an agent which is better positioned to read the market demand and secure quality tenants prepared to pay more for exceptional properties.
“This surge in demand across Edinburgh has drawn keen interest from international and UK property investors looking for a strong, no-hassle return from buy-to-let property in one of the UK’s most popular cities to live in.”
Students Stayed Put
The late arrival of university students returning to their studies in Edinburgh created a rush of demand in the final three months of the year which outstripped the limited supply. General uncertainty around Covid plus the rising cost of living means many tenants have stayed put to ride out the storm rather than moving to bigger properties or buying their own homes.
The buoyant rental market is a far cry from the first quarter of 2021, when a record year-on-year decline of 6.9% was reported in Scotland’s capital city. The average rent is now £1,191 – the highest figure on record and almost a 10% increase on this time last year.
Demand has also impacted the time it takes to let, with an average of 11 days compared to 33 days in December 2021. 93% of two-bedroom homes are now let within a month, and 59% of one-bedroom properties are let within a week.
Edinburgh’s rental market is predominantly one and two-bedroom properties (82%), providing an excellent investment opportunity for smaller budgets or those dipping their toes in the property market for the first time. Record rents and the availability of reliable tenants make the city a popular choice for investors.
And the imbalance between supply and demand is expected to continue long into 2022, pushing rents up further.
Clan Gordon has extensive experience in all areas of the Edinburgh property market, from lettings to investments, and can offer unrivalled advice to everyone, from first-time landlords to those with large property portfolios. We also have a free guide packed with top tips for successful property investment available for you to download.