Page 47 - ESPC Premier Living Spring Summer 2020

Premier PROPERTY

MARKET UPDATE

Nicky Lloyd, Head of ESPC Lettings, looks at what happened
in the Scottish Private Rental Sector in 2019

THROUGHOUT 2019 we experienced April 2019, the Scottish Government the owners of short-term lets step away
political and economic uncertainty. published a consultation asking for from this market over the next year
However, the Scottish Private Rental views on the regulation of short-term or so. They may choose to sell these,
Sector has remained generally stable. lets in the country. The results of the resulting in an increase in properties
In the final quarter of 2019, consultation were published in October. coming to market, or switch to long-
average rents in Scotland rose 3.5 According to the consultation, as term lets. However, given the number of
per cent year-on-year to stand at of May 2019, across Scotland there people moving in and around the capital,
£798 per month, while it took 29 were 31,884 active Airbnb listings this is unlikely to have a particularly
days on average to let a property. with Edinburgh and the Highlands adverse effect on the rental market.
Rents in Edinburgh have continued to accounting for 50.5 per cent of these As we move into a new decade,
rise for all property types (one to four listings. Results of the consultation the rental industry in Edinburgh and
bed), with the average monthly rent in focused on the positive and negative Scotland stays strong with new investors
the capital during the final three months effects of short-term lets to the looking to move into the market, more
of 2019 sitting at £1,134. The rental local area and community as well as tenants than ever choosing to rent
market in the capital moved quickly to the contribution to industry. and renting for longer periods of time
during the final quarter of the year, with At the start of 2020, the Scottish and rent levels consistently increasing.
an average time to let of just 22 days. Government announced regulation Therefore, the Scottish Private Rental
It’s interesting to see that, despite for short-term lets as a result of this Sector looks to be one of the markets
initial concerns the Private Residential consultation. The licensing scheme which will continue to grow.
Tenancy may have brought about the will include a new mandatory safety
potential high turnover of tenants, requirement that will cover every type Average rents and time to let
we are experiencing tenants renting of short-term let to ensure a safe, data in this article was obtained
for longer periods than ever before. quality experience for visitors. from the Citylets Quarterly Report,
The average tenancy length for It will also give councils the discretion covering the period from 1 September
Edinburgh properties is 19 months. to apply further conditions to address 2019 to 31 December 2019.
From January 2019 we saw an increase the concerns of local residents. Councils
in the Additional Dwelling Supplement will be able to plan control areas
tax for anyone purchasing a second home to ensure that planning permission p For expert advice
or buy-to-let property, from three to will be required for the change of and to find out more
four per cent. While potential investors use of an entire property to a short- about the range of
letting services on
were unhappy about the increase, it term let. The local authorities are offer, contact ESPC
didn’t slow down the buy-to-let market, set to have the ability to implement Lettings today on
it simply meant extra budgeting. these changes from spring 2021. landlord@espc.com
Short-term lets have become the These regulations will come into force or 0131 253 2847.
subject of much controversy and, in in spring 2021. Therefore, we may see

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