Edinburgh Q3 Rental Price Update

The Current State of the Rental Market

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The property market in Edinburgh is booming at the end of the third quarter of 2021. As restrictions from the COVID-19 pandemic gradually lifted throughout Scotland, the demand for student housing and HMOs have returned. Scotland’s time to let (TTL) a property with 1 – 4 rooms across Scotland takes no more than 35 days, according to City Let’s quarter 2 update. We can confirm that fact here at Edinburgh Letting Centre. Students and tourists are returning to Edinburgh, bringing with them a huge increase in demand for HMO and Family properties. Given the right property, the right location and, of course, the right agent, landlords can expect quality candidates to select as tenants.

Demand For Rental Accommodation in Edinburgh

In Edinburgh the demand for property is high in all areas; some notable rental areas would include Polwarth, Marchmont, Newington, Morningside, Stockbridge, Bonnington, Old and New town. Properties in these areas generate a large amount of interest in a short amount of time. Landlords are given multiple types of candidates to choose from. This includes but is not limited to: working professionals, local and international students, married or unmarried couples and families with varied sizes.In order to provide our landlords with the best candidate options at Edinburgh Letting Centre we require our applicants to provide us with vital information that will help us determine the nature of their intended tenancy. We also carry out employment, credit and reference checks on all approved tenants and their Guarantor’s. Finally, along with ensuring rent is paid on time, we also work with Safe Deposit Scotland to secure deposits in the event of damages or disputes.

Rental Prices in Scotland are Skyrocketing

We are currently in the midst of a property boom. According to research done by the Registers of Scotland; the average price of a property in Scotland has increased 12.1% since May 2020. The average rental price of a 4 bedroom (non HMO) property in Scotland is now £1,853. This could be attributed to a number of reasons; namely, the shortage of properties available in the UK, the return of rental demand post COVID-19, or to the increase in property maintenance costs due to building contractors being extremely high in demand too.
 
Bedrooms No. of Properties Surveyed Average Rent Median Rent
One bedroom 248 £1,143 £900
Two Bedrooms 357 £1,368 £1,100
Three Bedrooms 107 £1,836 £1,550
Four Bedrooms 39 £1,939 £1,800
Five Bedrooms 18 £3,284 £2,338
 

Are these High Prices Sustainable?

If there are no drastic or negative changes to the economy in the near future (like another pandemic, or another cargo ship blocking the Suez Canal) then it can be assumed that the value of residential property within Edinburgh will continue to rise. The market goes through natural peaks and troughs in price; however, in the long run a property investment in Scotland will always increase in value and rental price. The Quarter 2 report by City Lets shows the trend of the rental market over the last 5 years. We can see that the Coronavirus pandemic may have slowed the growth of the market in 2019-2020, but 2021 has seen prices rise to new heights.