The latest quarterly report from Citylets reveals property to rent in Edinburgh has risen on average by 1.6% to emerge at a new all-time high.
The Citylets Q3 2021 ‘Demandemic Scottish Lettings Report’ paints a positive picture for the lettings market for landlords across Scotland after the impact of Covid. Citylets reports ‘What began as a resurgence of tenant demand has quickly evolved into the strongest and most sustained period of lettings activity on record. Demand has been rekindled across all property types and sizes with additional late demand from students returning to their university cities for in-person learning.’
The positive news for landlords is that the Citylets data reports that properties across Scotland are now commanding an all-time average high of £906 per month up from £883 in the last quarter and properties in Edinburgh are averaging £1,157 up from £1,115.
Letting Through COVID-19
During the pandemic lettings agents in Edinburgh had a surplus of properties available for rent but a renewed confidence in the city has seen the number of available properties reduce dramatically.
Citylets Report 2021
Citylets reports ‘Larger properties, in general, continued to fare best with three and four beds posting annual growth of 8.4% and 5.8% respectively driving the Scottish average up 4.7% Year on Year to a new all-time high of £906 per month.’ The average prices for 1 and 2 bed properties are also buoyant, at £638 and £835, a rise of 2.4 % and 4.2% respectively.
In Edinburgh, rental values on larger properties increased in line with the national average, albeit at a marginally lower rate, with 3-bed homes increasing by 5.8% to £1,544 and 4-bed properties up by 3.6% to £2,106.
Clan Gordon Managing Director Jonathan Gordon said, “After months of Scotland’s capital being impacted by a lack of tourists, business visitors and students, the Citylets quarterly report indicates a positive future for the Edinburgh lettings market. Although this report is great news for landlords we recognise that tenants are really struggling to find homes in Edinburgh and we are striving to find more good quality properties from investors to let out.”
“We have been letting properties in Edinburgh for 13 years but I’m not sure tenant demand for all types of property has ever been as high as it has been in the last two months.
“Hybrid workers wanting larger homes and the return of university students seeking accommodation have prompted the dramatic improvement in the Capital’s lettings market. New working patterns and a shift in priorities for those tenants working from home, means proximity to public transport, and good road links have been replaced by the desire for larger homes offering a separate office and more outside space. We have also seen the return of thousands of students to the capital seeking accommodation for the 2021/22 academic year, which has contributed to the number of available lets plummeting.
“With the increased demand for lets across Edinburgh it is not surprising that we are also seeing very strong interest from new investors and landlords looking to rent out for the first time.
Demand Outstripping Supply
Demand is outstripping supply for one and two-bed properties as well right now so we are anticipating a rise in average rents across this area when the Q4 report is published later this year.”
Landlords can discuss their requirements with Clan Gordon by booking an appointment and any tenants looking for well-managed property to let can search our site at www.clangordon.co.uk/edinburgh-property-search