The Edinburgh private rental sector saw very low stock levels through Q3 2002, driving the high rents of Q2 higher still. The Scottish private rental industry also faced uncertainty, with the Scottish Government’s announcement on 6th September to freeze rents and evictions.
Citylets’ quarterly reports provide valuable insight into the Edinburgh residential lettings market and the wider Scottish private rental sector. Importantly, the reports also allow us to benchmark our experiences and performance with letting agents across Edinburgh. We are pleased to once again see our director Rick McCann quoted in this latest report, Quarterly Report Q3 2022 – Cold Snap
The private rental market in Scotland
Citylets note that the third quarter of any year often sees high demand for rental properties, resulting in seasonal lows in stock supplies. This year surpassed these seasonal trends, with average stock levels at a historic low.
This vastly unbalanced demand versus supply kept average Scottish rents rising to a new all-time-high of £981 per month, an increase of 8.3% year-on-year. The average Time to Let (TTL) was just 19 days, one day slower than the previous quarter but still eight days faster year-on-year.
It is likely that these pressures on supply will continue to push rents upwards through Q4.
The Edinburgh private rental sector in Q3
Many Edinburgh letting agents reported to Citylets that they have never operated in a more competitive market, and with a fast average TTL it remains difficult for tenants to secure a property.
In Q3, Edinburgh’s private rental market recorded a 14.7% year-on-year increase on average rents, to a new all-time high.
- The average TTL was 15 days,matching Q2 2022,and 15 days faster year-on-year.
- Average rents increased to a new all-time high of £1,327.
- 87% of all properties were let within a month, a rise of 3% on the previous quarter.
Our experiences: At Home In Edinburgh
Rick McCann, At Home In Edinburgh’s Director, said: “Demand in Q3 was the strongest we have ever experienced. The return of domestic and international students for the new academic year has put significant pressure on the already competitive market. We’ve seen many students starting the term with no accommodation who have resorted to staying in hostels, sleeping on sofas or commuting. It is clear to us that an urgent review of government policy is required.
“We do now have detail on how the Cost of Living (Tenant Protection) (Scotland) Bill 2022 will work, however, we are disappointed that the legislation does not balance the need to protect tenants and the cost pressures that landlords are experiencing.”
Our recent news article explains the new rules for landlords under the Cost of Living (Tenant Protection) (Scotland) Bill 2022, how these will work in practice and how they will impact landlords and tenants.
Our team is here to help
We are experts in the Edinburgh private rental sector, and our friendly, professional team are always happy to help. We know that many landlords have concerns about the new rules for landlords, despite the buoyancy of Edinburgh’s private rental sector, and we are here to guide and support you.
It is worth noting that the new rules apply to existing tenancies, with a reduced impact on new tenancies. So, if you have been considering an Edinburgh property investment to capitalise on the strong rental market, our expert team will be happy to chat through your options. We also offer free, no-obligation property-sourcing services and buy-to-let property assessments.
Get in touch with any queries – email us at [email protected], call us on 0131 229 4001, or pop in to see us at 39 Warrender Park Road, Marchmont, Edinburgh, EH9 1EU.