Highest rental stock level in over 5 years and a change of pace for City Centre properties
May has brought another wave of noteworthy developments to the Edinburgh rental market, continuing the trend set in recent months. The month delivered the highest number of properties available for rent on Rightmove in Edinburgh and The Lothians for over 5 years, reaching an impressive 1,417 listings on a single day. Interestingly, this figure almost exactly mirrors the number of new instructions received throughout the month,1,416 properties, highlighting the high volume of turnover in the current market.
Will the supply keep growing? Or will demand take over?
Whilst the trend suggests the supply of available properties will keep growing, we are seeing a renewed appetite for central areas. Properties in the city centre aren’t suffering the lengthy void periods as before. Tenants looking for a more central property may lose the negotiating power they previously had.
Our lettings team have confirmed student season is fully underway, which is a likely cause for the uptake in demand. Properties more suited to student living are being snapped up, especially HMO’s (Houses in Multiple Occupation).
Central Demand vs Patience on the Outskirts
Whilst negotiating power wanes in the city centre, tenants looking for City Centre accommodation should act swiftly. Prospective tenants looking outside of the City Centre still have more time to make a considered choice. With properties still facing longer void periods, landlords outside the City Centre should be pricing competitively.
What this means for Landlords:
If you own, or are considering investing in, student-appropriate properties or those in central locations, the timing is ideal. High demand and quick lets are reducing void periods and enhancing returns as we always see at this time of year.
Owners of properties that are situated on the outskirts of Edinburgh may need to adjust expectations slightly or explore strategies such as enhanced marketing, flexibility or minor refurbishments to appeal to a broader audience. Keeping a close eye on how demand evolves in the outskirts could reveal new investment opportunities.
Looking Ahead
The Edinburgh rental market is dynamic and fast-moving, with May reinforcing key trends of growth and seasonal activity. Whether you’re a landlord looking to capitalise on current demand, or a tenant searching for the right place to call home, understanding the market’s direction can make all the difference.
We’ll be watching closely to see if the suburbs begin to mirror the centre’s momentum in the coming months. 7