THE PRIVATE RENTED SECTOR IS SHRINKING

We’re seeing big changes in the Edinburgh private rented sector (PRS) this year compared to 2023 & 2022. The total number of properties in the PRS is shrinking due to higher interest rates putting pressure on landlords’ finances, and some disastrous policy making from the Scottish Government relating to the PRS, is making many landlords decide to exit.

 

MORE AVAILABLE PROPERTIES

Despite the volume of rental stock shrinking, 2024 has seen more properties advertised as available for let compared to the first 3 months of 2023 and 2022. Currently the number of properties available for let on Rightmove is 80% higher than last year. This is on the back of 23% more properties being advertised for let over the first 3 months of the year than last year. This indicates that tenant demand has cooled slightly over the winter months but the signs are there that we’re heading into another spring/summer period where the demand from tenants for rental properties significantly outweighs the supply. These are the conditions that have led to Edinburgh Council declaring a housing emergency along with 3 other Scottish local authorities.

 

ADVERTISED RENTS RISE 12%

According to Zoopla, advertised rents are continuing to rise, up 11.6% in a year across the whole of Scotland. This leaves policy makers in a precarious position where any further intervention to cap rents is going to reduce current rental stock even further and discourage future investment in building houses for the Scottish PRS.

 

3% RENT CAP LIFTED

The lifting of the 3% rent cap on the 1st of April is helping keep more landlords and properties in the market but it’s not enough to stop the shrinkage of the PRS overall.

 

NOT ENOUGH NEW HOMES BEING BUILT

The solution of more homes for people to rent is not on the horizon so we expect the rest of the year to be similar to the last 2 where there are many more tenants looking for somewhere to live than there are homes available.

If you are a landlord, or are considering becoming one, and want to hear more about what’s going on in the Edinburgh PRS, give us a call or send us a message. We’re more than happy to talk about it and help in any way we can.