As highlighted at Q4 2020, Edinburgh has suffered more than most through its standing as an international city for work, study and leisure. The long expected decline in rents, with accompanying increase in TTLs, arrived in Q1 2021 with falls across the board. The average property to rent in Edinburgh fell 6.9% year on year (YOY) to £1063 per month. Demand for larger family homes did not offset the collapse of HMO enquiries resulting in 3 and 4 bed properties falling most at 6.1% and 17% respectively. However, with the easing of restrictions, it is likely these markets will recover relatively quickly but with pressures on 1 and 2 bed markets remaining until the holiday market returns. Oversupply of smaller properties will likely persist deep into 2021 with a muted international tourist season, though perhaps tempered to some degree by increased demand from domestic staycations.
“As Covid restrictions tightened, the trend from the end of 2020 continued into Q1 2021. A higher than usual number of tenants served notice and longer time to lets resulted in a downward pressure on rents. Demand going into Q2 remains depressed. Our concerns about the student market came to fruition with students deciding not to return in the new year and giving up their tenancies. Those that did remain, negotiated on their rent. In a competitive marketplace it is essential to present properties in their best light, so we have been working hard between tenancies to renovate properties and improve advertising.”
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