The latest Citylets quarterly report on the state of the Scottish lettings market paints Edinburgh as a victim of its own success. The lack of business travel and tourism due to COVID-19 restrictions is blamed for a negative impact on rents.
But Jonathan Gordon, director of the highest-rated Edinburgh letting agent Clan Gordon, says landlords who focus on providing high-quality accommodation can still prosper.
Final Quarter Of 2020
Jonathan, who opened the Edinburgh letting agency with brother Andrew in 2007, said: “Quarter 4 for us saw a significant uptick in new landlords with quality flats to let in central Edinburgh. Some, but not all, are ex-Airbnb flats but others are new buy-to-let investments or one where the landlord has moved home and is letting their old home.
“All in all, we are continuing to see better quality flats and landlords who understand the need for good condition in order to get the best tenants.”
Data in the Citylets report shows that Edinburgh's rents fell for the first time in 10 years in the last quarter of 2020. Conversely, rents in Glasgow and the nearby regions of South Lanarkshire and Renfrewshire rose significantly. The report blames the ‘deluge’ of vacant stock in Edinburgh due to the lack of short-term holiday lets. Other nearby areas in Scotland continue to experience property shortages.
Jonathan commented: “Higher supply and slightly lower demand in Edinburgh is now starting to have downward pressure on rents but nothing too significant yet. It is very difficult to plan ahead and know what will happen in 2021 but the need to renovate and provide flats in good condition is becoming more and more obvious.”
Edinburgh letting agent Clan Gordon manages hundreds of rental properties across the city and is ideally placed to advise landlords on strategies to ensure they have a ready supply of tenants. The Clan Gordon website offers a host of ideas and recommendations - and presenting a property in as-new condition is high on the list.
Rental market ‘likely to remain buoyant
Despite the negatives, the Citylets report paints a relatively positive picture for the future and predicts the rental market “is likely to remain buoyant as the need to choose home environments suitable to some degree of home working continues for many.”
Indeed, many people’s home working situations could continue indefinitely as firms re-evaluate the need for staff to be office-based, so rental properties with flexible space and those that can accommodate a small office are certain to be popular in 2021.
Rents in Edinburgh may have fallen last quarter but there are anecdotal signs they have stabilised and risen again slightly again in some areas . Landlords who are agile and respond to the changing market are likely to be impacted least.
If you are a property owner looking to let your property in Edinburgh, Clan Gordon can advise on how to achieve the highest return on your investment. Schedule a call today and find out why Edinburgh landlords entrust their property management to Clan Gordon.