Early 2019 could be the perfect opportunity for landlords to add to their Edinburgh rental property portfolio, and yes, we all know that Brexit’s political uncertainty is looming large – but what you may not have spotted is the positive news from Citylets and ESPC in their most recent reports, which reassuringly show that Scotland’s capital is continuing to outperform national trends.
Growth in Scotland’s private rental sector
Citylets’ Q3 2018 report notes that “Scotland’s Private Rented Sector continued unabated”:
Average rents: Rents in Scotland were up on Q3 2017 by 2.2% overall, year on year, at an average of £789 per month.
Average time to let: Properties took an average of 31 days to let, one day quicker than in 2017. 19% of properties were let within a week and 61% were let within a month.
1. Citylets Q3 2018 Report – Market Overview of the private rental sector – Scotland
Adrian Sangster, of Aberdein Considine, noted that in the north of Scotland there is no issue of stock. This contrasts with the south, where demand is exceeding supply – there aren’t enough rental properties available to meet tenant demand. This is means that rent values continue to increase in the south, and he suggests that these rental trends will continue into Q4.
Edinburgh’s private rental sector
Edinburgh has seen eight full years of positive annual growth – that’s 32 consecutive quarters.
Average rents: Rents in Edinburgh were up on Q3 2017 by 5.6% overall, year on year, at an average of £1,107 per month.
This increase demonstrates the continuation of the sector’s growth, year on year – average rents are up 35.0% on 5 years ago and up 45.3% on 10 years ago.
Average time to let: Properties took an average of 21 days to let, one day quicker than in 2017. The majority of properties were let within a month (76%) and of these, 28% were let within a week. For one-bed flats the time to let reduces to an average of just 17 days, with 83% let within a month and 35% within a week.
2. Citylets Q3 Report: Market overview of the private rental sector – Edinburgh
The biggest increase in average rent in Edinburgh was for four-bed properties, up 10.8% on 2017 and up 53% on 10 years ago.
Ian Lawson, of Lomond Capital, noted that activity in Edinburgh’s property market continues to be busy with investors seeking good quality stock in the city, in particular for one and two bed properties. He states that there has been a slight increase in the number of landlords choosing short term lets, but that the long term rental market is stable after adapting to Private Residential Tenancies.
Continued demand for rental property
The high level of demand for rental properties in Edinburgh will be maintained, as property prices continue to increase. The ESPC House Price Report for December 2018 found that between October and December 2018 the average selling price in east central Scotland rose by 4.4%, rising by 5.7% within Edinburgh.
The report also brought positive news for those considering buy-to-let investments, with an increase on the number of homes coming to the market. Between October and December 2018 the number of properties coming to market in Edinburgh was up 14.7% on the same period in 2017.
What does this mean for landlords?
Edinburgh remains a strong location for buy-to-let investments, offering both strong rental growth and capital growth. The property market is generally quieter through the winter months, so now is the perfect time to consider growing your rental portfolio or taking your first step into the rental property sector!
Our free Buy-to-Let Assessment service is great way to help find the right rental property for you, or if you’d like an informal chat with us about your next steps then please get in touch – our team is professional, experienced and friendly, and we’re always pleased to help.
Call us on 0131 229 4001
Email us at [email protected]
Pop in to the At Home In Edinburgh office, at 82 St. Stephen Street, Edinburgh, EH3 5AQ.