The swing in the fortunes of the Edinburgh rental market became more pronounced over Q1 2022 with average rents rising an unprecedented 14.2% YOY as demand continued to outstrip supply. The average property to rent in Edinburgh reached an all time high (ATH) of £1214 per month with TTL still exceptionally low at 16 days. The return of competition in the seasonal student market sent 4 bed rents soaring 27% compared to the subdued market of last year. The 10 year picture, however, for 4 bed properties remains a relatively sanguine average of 5.8%. More generally, market oversupply of just 3 quarters ago all but forgotten.
“The market in Edinburgh remains buoyant; we have moved from an oversupply of stock to one of a severe undersupply with high tenant demand and unprecedented activity levels. Properties are letting extremely quickly with multiple applications received for each listing. We do not expect the shortage of supply to change as investors are either exiting the market or are cautious of entering due to the uncertainty created by the Scottish Government’s proposals for increasing regulation and artificial control of the sector. Due to this, we expect upward pressure on rents to continue to the detriment of tenants.”
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