The Rettie Blog

Strong demand – high rent inflation. When considering property as an investment class, the number one priority is ensuring there is demand for your property, and that you can command a strong rent. Never in a generation have we seen such high demand, low supply, and steep rent inflation in Edinburgh & Glasgow

As we approach Scottish Housing Day on Thursday 18th September, the focus this year is on "Homes for Life." It's a perfect opportunity to reflect on how the housing sector in Scotland can better support people in later life, especially as needs and priorities evolve.

In a market where regulations and landlord compliance is ever changing, managing your lettings property or portfolio can be overwhelming at times. One of the most important decisions you may find yourself making as a landlord is deciding how hands-on you want to be.

Rettie’s Director of Research, Dr John Boyle, has featured in a set of podcasts in recent weeks in which he gives his latest take on market changes as well as the impact of new legislation and how to address Scotland’s housing problems. Each is summarised here with a link to the podcast itself.

Existing owners, who through a change in personal circumstances are renting their properties in today’s market, seem very comfortable with the new rent controls. For these circumstantial landlords, the prospect of 6% annual rent increases has been widely accepted as very reasonable and agreeable.

Property management is nuanced. No two properties are the same, and when you add in landlords, tenants, contractors and the neighbours, there are many variables and complex relationships to manage.

From Spring 2023 through to Autumn, demand for rental properties across Edinburgh and Glasgow far exceeded supply, leading to steep competition between tenants and double digit rent inflation. With the 3% rent cap remaining, combined with the rise in interest rates, landlords with vacant properties increased their rents more than in previous years.

Demand for rental properties across most levels in the market has been strong from the start of Q1 2023 and increased through Q2 & Q3. During the summer months, demand for affordable accommodation (£1000pcm - £1500pcm in Edinburgh & £800 - £1,200 in Glasgow), rose to almost unmanageable levels.

Background – A New Deal for Tenants … The Government are moving forward with rent control proposals, this includes controlling rents in between tenancies so properties will never be able to revert to the market rate.

The Edinburgh housing market is witnessing unprecedented levels of demand for rental accommodation and, most worryingly, an unprecedented shortage of supply.

Void periods kill rental yields, so if you are thinking of putting your property on the market for let, here's a short list of the top six key tasks to undertake to ensure you receive rent as quickly as possible.

Rettie has appointed Rob Trotter as Director of New Business for Lettings, joining from DJ Alexander where he spent nearly two decades, most recently as Director of New Business (Scotland), as we look to significantly increase our lettings activity over the next few years. Rettie currently manages over 2,000 rental properties.