EDINBURGH
PULSE
RENTAL
Edinburgh’s property market has always
appealed to investors; with a high student
population and strong financial sector
there has always been a good demand for
let property.
Across the UK the rise in the number of
unsold properties hitting the rental market
has pushed rents down by as much as 25
per cent. Average rents dropped to £795 a
month in February, contrast with £950 in
May last year, equalling an average fall of
16.3 per cent. However, in Edinburgh there
has been an increase in the demand for
A new two bed flat
rented properties – up by 25 per cent –
at Portland Gardens
and rents have remained steady although
sold at full asking
some agents have seen decreases.
£205,000
price recently
Grant Lidster, Business Owner of Belvoir
Edinburgh South, believes that the lettings lengthened considerably and rents have most decent agents/landlords meet the
market in the current economic climate declined faster than might have been required high standards being laid down.
will continue to increase from a volume expected. The current average time-to-let Overall Edinburgh seems to have very
perspective. “However,” he says, “in many has increased to around 48 days, some 12 good quality accommodation, but as in
areas rental income will remain slightly days longer than in Q1 2008. 38 per cent of most cities, there will always be a small
depressed due to high levels of rental stock all properties let within a month down proportion of unscrupulous landlords.
versus tenant demand.” from 52 per cent the previous year.”
The largest sectors of the market, one Letting agents tend to manage every INVESTMENT
and two bedroom flats, saw the biggest falls type of property – cottages, detached and Those with cash to invest are finding
with rents for larger properties generally terraced houses, apartments and flats, both property to be a good choice since savings,
holding steady. One bedroom flats falling new and traditional build, and report that fixed bonds etc currently provide a small
between 0.5 per cent to the above average the average rents over the past six months return on investment. Although at the
and two bedroom flats falling 0.75 per cent for Edinburgh are: one bedroom £515; two moment, according to Grant Lidster of
– although the aggregated declines are bedroom £650; three bedroom £795 - Belvoir, the ‘normal’ run of the mill buy-to-
modest, some areas have seen larger falls. £950; four bedroom £1,200. let landlord has quite simply been
However, other letting agents report that Some agents found it difficult to squeezed out and the ‘corporate investors’
some Edinburgh landlords are seeing rental comment on the quality of rental are also few and far between, foreign
prices increasing as people avoided buying accommodation in Edinburgh as a whole investors looking to buy property in
properties and that the weak pound had as in general this would vary from landlord Edinburgh are giving the property market
lured ex-pats back to Scotland. Citylets in to landlord and between property in the city its first signs of recovery
Edinburgh reported rents for two bedroom management firms. However many felt The ELPG group has said that, as house
properties in the capital increasing by 4.7 that tougher legislation along with more prices are close to bottoming out and
per cent and rents for one bed properties regulated industry policing is ensuring that interest rates are so low, buyers from
increased by three per cent over 2008. abroad are taking advantage of the
RE/MAX Property Services reports an exchange rate to buy bargains in
increase in supply over the last six months. Edinburgh.
Gary Clark, Director of RE/MAX Property Leslie Deans, senior partner at Leslie
Services: “The decline in the sales market Deans & Co, said: “I have already been
has had an impact on the rental market as approached by a couple of foreign investors
home owners who wish to wait for who are taking a great interest in
improved conditions opt to let in the short properties in Edinburgh and the
term, resulting in an increase of available surrounding areas. Because the pound is
properties and therefore greater choice and
I believe that the
performing relatively poorly compared to
more competition in the rental market.
Tenants can now be much more particular
lettings market in
the Euro, there are a number of cash rich
investors who are currently looking to take
about their accommodation requirements.”
the current economic
advantage of the exchange rate and are
Grant Lidster of Belvoir also believes looking at the UK - and Scotland in
that the increase in supply over the last few climate will continue particular – as the ideal place to invest
quarters has given tenants greater choice
and allowed them to be more particular:
to increase from a
their money.” RE/MAX have recently sold
a new build two bedroom flat in Portland
“The greater choice of rental property
volume perspective.’
Gardens near Ocean Terminal for the full
available to tenants has had a dramatic asking price of £205,000 to an international
effect on time-to-let averages which have GRANT LIDSTER, BELVOIR EDINBURGH SOUTH buyer for cash (pictured).
30 JULY-AUGUST 2009 PROPERTYdrum
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