We’ve digested Citylets’ recent market report for Q2 2021 – and it reflects what we’ve been seeing with our properties. The rental market is in a great position as it recovers from the impact of the Coronavirus pandemic.
Confidence is returning as restrictions ease. The report, which can be read here, shows the future’s looking bright.
How’s the rental market looking for Scotland?
Covid restrictions had a noticeably negative impact on average monthly rental values across all regions in Scotland as 2020 drew to a close. However, the data shows that as restrictions gradually eased, there was positive growth across the country. So much so that by the end of June this year, monthly rental values were at an all time high of £883 per month.
Many predicted that as a result of changing work patterns, demand would increase in areas outside the city. While tenants increasingly sought larger properties to accommodate home working and more living space, it is noteworthy that there’s still strong demand for rents in Scotland’s biggest cities, which held firm and reported positive annual growth.
Demand for larger properties with 2+ bedrooms have returned to pre-pandemic levels as a result of students returning to their accommodation for the next academic year, and tenants seeking more living space for working, and working out, from home.
There was an oversupply of 1 and 2 bedroom properties over the past year. The graph below shows relatively little growth, but as demand continues to outweigh supply, we expect to see positive growth across all property types in the months ahead.
Tay Letting looks after properties for landlords across Scotland from our offices in Glasgow, Edinburgh and Dundee. We take a closer look at these cities.
Average rents are up by 8.9% compared to last year. Demand has continued to surge for all property types in the city – so much so that Glasgow has outperformed Edinburgh, Dundee and Aberdeen.
The rental market in Edinburgh has experienced a seismic change as a result of changes to short-term rental legislation and the loss of confidence from owners of Airbnb properties
Despite a challenging start to the year for the Edinburgh rental market, which saw average rents fall 6.9% year on year during Q1, the market is gathering pace again in Q2, minimising the decrease in year on year average rental values to just 0.6%. Properties with more than two bedrooms bounced back at pace following the easing of restrictions.
We’re really excited by Dundee’s rental market, which reported only a small downturn in average rents YoY (just 0.4%). The market is picking up pace – more than 50% of properties are let within a month.
Tay Letting Performance
The Citylets data allows us to analyse how we are performing against national and regional averages. We are pleased to report that Tay Letting have performed strongly over Q2 across all offices. Here are the key figures:-
*over half of the properties rented in Dundee in Q2 were bedsits or one bedroom flats, which has pulled down the average rental figure.
Contact us to find out more.