2020 has been an unprecedented year for letting agents in Edinburgh. Along with the rest of the UK, the property rental market in Edinburgh has continued to face considerable new challenges. The most recent Citylets report for Q3 reports on the ongoing effects the coronavirus pandemic has had on rents, time to lets and stock levels. It also mentions the recent trend in the UK of a growing number of tenants opting to move away from urban areas into more rural towns and villages. Thankfully it appears that there is no evidence to suggest that Scotland’s main cities are being significantly impacted this way. This is good news for Edinburgh landlords.
Q3 numbers at a glance
- In Edinburgh, the average rent recorded by Citylets in Q3 2020 was £1,139, down 0.8% compared to last year.
- The Time to Let (TTL) increased in Edinburgh, rising to 46 days. This is 11 days longer than Q2 and 19 days longer than the same quarter last year.
- 45% of all properties were let within a month, down from 50% in the previous quarter.
Q4 & beyond: how does the market look?
In Q4, the market continues to face significant challenges,
- Edinburgh city moved into Level 3 restrictions during the quarter.
- The Chancellors autumn spending review was not particularly friendly towards the rental sector, freezing the Local Housing Allowance (LHA), with the National Residential Landlords Association, in particular being highly critical.
- In 2021 there is the looming uncertainty of Brexit (deal/no deal) and what impact this may have on the rental market
So far, the Edinburgh property rental market appears to have weathered the crisis well. It is well known that Edinburgh’s rental market is particularly resilient. In fact, in normal times Edinburgh attracts over four million visitors a year. This makes Edinburgh the UK’s second most visited city, after London. In addition, at the start of the pandemic, many properties marketed for short-term lets were quickly converted to longer-term lets. Now that there is a vaccine on the horizon and the end of the pandemic is in sight, it is likely that the demand for short-term lets will increase once more.
Edinburgh as a city to invest in
Edinburgh is also mentioned in Property Reporter’s “Where are the top cities and towns to invest in 2021?† The article uses data from multiple sources taking account of both past and forecasted rental yields and capital growth. These are the figures it presents for property in Edinburgh,
- Average Price: £333,691
- Average Rental Yield: 4.19%
- Price Growth in Five Years: 12.33%
It also presents this very positive commentary on Edinburgh as a good place to invest in property.
“Edinburgh is a permanent fixture in the residential investment league tables. Due to its huge popularity as a place to live and work, the Scottish capital has seen excellent price growth over the past decade, demonstrated by its slightly higher average price point than most of our top ten. With its continually rising economy, JLL predicts a positive impact on property prices to the tune of 17.1% over the next five years – the highest growth rate of any UK city.â€
Roberts Residential Letting is a trusted, experienced ARLA regulated letting agent in Edinburgh. Please get in touch if you need any help with letting or managing your property.
