Ramifications of the COVID-19 pandemic contributed to a resurgence of tenant demand during late Q2 2021, quickly evolving into a unique period where demand for property to rent has been simultaneously high in all regions as outlined in the latest Citylets report.
Rental stock
Stock levels have declined dramatically, with residential property to rent in many areas of Scotland pivoting abruptly from abundant choice to slim pickings.
Major cities, satellite towns and rural locations all posted positive annual growth of up to more than 10 per cent.
Rental prices
Larger properties continued to be the most attractive with three and four beds posting annual growth of 8.4 per cent and 5.8 per cent respectively driving the Scottish average up 4.7 per cent Year on Year to a new all-time high of £906 per month.
Efficient housing needs
The Scotland-wide average Time to Let (TTL) decreased by 14 days on average, with a current trend for private developers choosing to build more student accommodation, despite the report highlighting how tenants are getting older and staying in properties longer – highlighting the need for more housing for growing families.
The importance of mixed tenure housing has consistently been highlighted by Propertymark, more recently in a letter to the Secretary of State, outlining that the lack of housing options for older people actively encourages people to stay in homes that are not efficient for their needs.
The City Lets Quarter three report evidences the conversations property professionals have been having for some time concerning the imbalance between stock and demand.
To satisfy the needs of those in the rented sector new landlords need to be incentivised, meaning it’s important when future legislation is being made it strikes a healthy balance between landlord and tenant and all parties are being treated fairly.
It is evident Scotland needs an adequate mixed tenure of property to ensure there are enough homes to suit everyone and the Scottish Government must factor in changing demographics when policy making.
