Everything you need to know about the rental sector boom
In this blog, we’ll take you through the trends we’ve noticed in the rental market this year, and how you can make the most of the current situation.
Surge in demand
This summer we have experienced an unprecedented surge in demand for rental properties, of all types, across every region in Scotland. As restrictions begin to ease and people feel a little more certain about what the future looks like, the rental market is in great shape.
With office workers returning to their usual commutes and cities opening again, we are finding that people want to return to the pre-pandemic hustle and bustle.
Much like the sales market, it was uncertain how the rental sector would fare throughout the pandemic. Whilst 2020 undoubtedly brought its challenges, in part due to successive lockdowns, Q2 and Q3 of 2021 have told a different story of a booming Scottish rental market. We’re now in a position where demand well and truly outweighs supply.
In the last six weeks alone, we have secured eight high-value rentals in Glasgow off-market. We have also seen a growing trend of “10-minute marketing” – where properties need only be advertised for a few minutes before we receive an overwhelming number of phone calls to note interest.
Here we explore some of the reasons why the demand for rental properties has taken off.
Return of Confidence
Covid restrictions have eased again, and many tenants have held off moving home until there is more certainty that we’re coming through the worst of the pandemic. There is a definite feeling that certainty is on the horizon which is driving the boom in people looking to move.
We are also finding that tenants are looking for bigger properties, especially those with outside space as working from home continues. The pandemic has helped people realise that extra space is worth the premium. Especially when you’re spending an increasing amount of time living and working in your home.
2020 may have been the first year in living memory when students didn’t rush to rent flats in the late summer months as university teaching moved online.
However, universities are returning to more normal teaching, and so students are looking to secure accommodation. Increasingly, we are seeing students looking to secure accommodation privately rather than rent halls of residence from universities.
People selling their homes
Just as the rental market has seen a huge boom this year, the sales market has performed exceptionally well. This has further contributed to the rise of the rental market.
Many sellers have taken the opportunity to put their homes on the market this year whilst the market remains hot. As a result of this, many are entering the rental market in the short to medium term whilst still looking for their next home.
Landlords leaving the rental market
With such a buoyant market, many landlords have taken the opportunity to cash in on their investments. This means there is less supply of rental properties, coupled with increased demand. Despite the initial cost of investing in residential property, rents are increasing exceptionally. However, yields are still good, making it an attractive investment opportunity.
Find out more
We have the expert knowledge to help you manage your property portfolio and respond to market trends. We’ve agreed more than 5,000 lets and have a comprehensive understanding of the Scottish property market.