Citylets have just released their Quarterly report for Q3 2018. Rents across Scotland have increased by 2.2% on this time last year to an average of £789pcm with an average time to let of 31 days.
8 years of rental growth in Edinburgh – We’ve got used to a pattern of increasing rents in Edinburgh and for the 32nd quarter in a row, rents have increased. The average rent in Edinburgh has grown by 5.6% since Q3 2017 to a record high of £1,107pcm and properties take, on average, 21 days to let.
Large properties performing well – Citylets suggest that the strong rental growth for 4 bedroom properties is being fuelled by a “strong demand for family accommodation”. We’ve definitely seen an increase in family homes being offered to let in recent years (perhaps due to owners being reluctant to sell with the sales market stalling for properties priced in the higher LBTT bands) however there’s no doubt that the main driver for the increase in Q3 is the ever-buoyant student market with rents on those properties setting new heights for tenants signing up for properties over the summer months.
1 bedroom properties letting in less than 3 weeks – As the market overview table below highlights, rents for 1 bedroom properties have grown less than larger properties, albeit still up 4.4% (to £780pcm) in the last year and 38.3% in the past 5 years so ahead of the city average over the past 5 years. These properties fly off the shelf and void periods are minimal with an average Time to Let of only 17 days in Q3 2018 with 35% of 1 bed properties letting in the first week (a Time to Let of 17 days doesn’t mean properties sit vacant for that time as most investment properties will be marketed for let while a tenant is already in place, paying rent, so any void period should only be a couple of days).