Static Conditions in March
The volume of available rental properties on the Edinburgh market has increased slightly over the last month. This has been a common theme of 2021 so far with lockdown creating a fairly static set of conditions in the market. Despite the high volume of stock on the market, there have been 25% more new tenancies agreed in the first 3 months of 2021 compared with 2020 so despite the seemingly static levels of properties on the market, there is a decent level of turnover on the market; new tenancies being agreed and new properties for let being added in their place.
The End of Lockdown will Accelerate the Market
Stock levels being so high for 5 months, since November last year, has caused rent levels to reduce and the asking rents in Edinburgh are down roughly 10% from their pre-COVID levels.
The number of properties on the market in February 2021 was 62% higher than a 2020 but with the COVID restriction level in Edinburgh expected to be reduced in April, we expect the market to start to accelerate and the stock levels will reduce as a result. Last May the available stock levels were 81% higher than they were a year earlier and this figure fell rapidly in June and July 2020 following the end of lockdown 1. It’s impossible to predict how long it will take this time around but we do expect a steady drop from April onward, following which rents should move back towards pre-COVIDlevels.
Change is Coming
March saw a 5th month in a row of slow and steady market conditions in the Edinburgh rental market but we expect the market to accelerate and stock levels to drop as we head into the summer. Change is coming.