After an influx of Airbnb properties to the long-term letting market at the beginning of the pandemic, Edinburgh City Council has dealt a hammer blow to those pinning their hopes on a quick recovery by the short-term letting market.

Residents have been extremely vocal for years about how the vast amount of Airbnb properties in the city were damaging communities. It’s no surprise that the new planning regulations which came into force at the beginning of this month to target hot-spots and eventually enforce planning permission for full-time holiday lets have been welcomed by locals.

While organisers of Edinburgh International Festival have announced that the festival will be going ahead, albeit outdoors, there has been no rush back to Airbnb for the many landlords who chose to switch to the security of long-term letting during the pandemic.

However, despite the huge influx of Airbnb properties to the market since March last year, demand still far outweighs supply.

More than a year on from when we successfully let Edinburgh’s most expensive apartment at The Crescent, there continues to be a huge appetite for premium properties. Just last month, a neighbouring apartment was let for £4,000 per calendar month with not a single day of void period. Our properties in the city continue to average above £1,600 per month for a two-bedroom flat.

ESPC reported that property sales have increased by 73% in the first quarter of 2021, reflecting increased confidence in sellers as lockdown restrictions begin to ease.

While the LBTT holiday coming to an end last month may have also played a part, the launch of the 95% mortgage guarantee scheme will likely make for continued mobility in the market. There will also be opportunities as many short-term letting landlords choose to sell-up.

We continue to help investors expand their property portfolio through our Tay Invest service.

Recently, one Tay Invest client was looking for a high end property which offered a mix of capital growth and yield to add to their portfolio.

After sourcing a property in one of the most prime address areas in Stockbridge, we carried out the viewings, presented an appraisal and suggested purchase price. With the property secured we managed the furnishings and secured a tenant within only three weeks, with a gross yield of 4.16% and capital growth between 3-4% per year.

When considering 2 and 3 bedroom properties in Edinburgh, there are particular areas where property values have soared even more significantly compared to last year:

  • Newington – 17% increase

A 20 minute walk from the Royal Mile, Newington is home to many independent boutiques and restaurants. Surrounded by Victorian Architecture, Newington is a vibrant and relaxing residential area to consider.

  • Liberton – 13.2% increase

Located in the south of Edinburgh, Liberton is close to Braid Hills which is home to an established golf course. The area provides impressive views of the city. Cameron Toll, a fantastic shopping centre is nearby, offering a range of services and stores and posing a convenient locale to consider investing.

  • Stockbridge / Comley Bank / Fettes / Canonmills – 11.5% increase

To the north of Edinburgh’s city centre is Stockbridge. This area has a charming village feel and is home to many long-term residents as well as young professionals. Stockbridge stretches all the way to the stunning Royal Botanic Gardens. Multiple independent restaurants, shops and bars are surrounded by elegant Georgian and Victorian terraced houses.

  • Marchmont / Bruntsfield – 10.6% increase

The Meadows and Bruntsfield Links separate Marchmont and Bruntsfield from the south of Edinburgh’s Old Town area. Four storey Victorian and Edwardian era townhouses create an impressive walk way, nodding to a long lost Edinburgh era. Roughly a mile away from the Old City, the much desired residential area is ideally located for the best of the city.

Get in touch to discuss our Tay Invest services, and how we can expand your property portfolio in Edinburgh.

 

– Malcolm Pickard, head of Tay Letting’s East Coast operations