Tag: demand

Edinburgh’s private rents soar as the capital bounces back

Post-pandemic surge in demand sees rents hit record high

The appeal of living in the Scottish capital has been reignited, with new figures showing a resurgence in demand for city properties that has pushed rents to record highs.

New research from property letting portal Citylets, shows the average monthly rent in Edinburgh rose 14.2% year on year (YOY) to an all-time high of £1,214, well above the Scottish average of £896.

Figures also show that the average Time To Let (TTL) – the period a ‘for rent’ sign is displayed at the property – is just 16 days, lower than the Scottish national average of 18-25 days across one, two, three and four bedroom properties.

Thomas Ashdown, Managing Director of Citylets said: “City living is back. During the pandemic growth slowed in most cities and accelerated in surrounding areas.

“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns. The appeal of the city lights appears to have endured some extreme disruption, it would seem.”

However, he pointed out that letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.

The Citylets quarterly report for the first three months of 2022 shows demand for rental properties across Scotland exceeded supply in both rural and urban areas. However, the numbers of available properties was slightly higher than the historic lows reported the last quarter of 2021.

By postcode Edinburgh’s rental hotspot for one-bedroom properties was EH16 (including Cameron Toll, Craigmillar, Liberton) where the TTL was only seven days, while the TTL for two-bedroom properties in EH14 (including Slateford, Longstone, Wester Hailes, Balerno) was an average of only nine days.

At the top end is the EH3 region (New Town, West End, Tollcross and Fountainbridge) which has the highest property prices throughout Scotland, averaging £1,001 for a one-bedroom, £1,482 for a two-bedroom and £1,923 for a three-bedroom property.

Mr Ashdown said: “Despite relentless economic worry and the conflict in Ukraine that will further impact on the cost of living, the market is very busy. People want to get on with life and make decisions now which may have been postponed in recent months.

“While there is slightly more supply of properties than there was at the end of last year, it’s not a widespread phenomenon and this is not something can always be addressed quickly. The consequence of that is, with no sign of demand reducing, rents may continue to rise throughout 2022.

“While it’s reassuring to see that cities are coming back to life, rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”

Charlie Inness, of Edinburgh letting agent Glenham Property said: “Edinburgh has moved from an oversupply of stock to one of a severe undersupply with high tenant demand and unprecedented activity levels.”

He added: “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.”

The figures highlighted in the quarterly report show that available properties were being snapped up rapidly in Edinburgh, with 39% of properties let within one week and 84% taking less than a month to be let.

Jamie Kerr, of Edinburgh’s Ben Property said: “Quarter 1 of 2022 has seen an extraordinary surge in demand across Edinburgh and strong rental levels are being achieved with a short time to let.

“However, while the market is extremely busy and properties are letting faster than ever, there is a worrying lack of supply across the board which should be a wake-up call for the Government.

“There needs to be more investment in social and build to rent housing, and a deeper understanding of the vital role played by the private rental sector, encouraging private landlords and investors, not discouraging them. Only this can redress the balance of supply and demand and calm rental levels accordingly.”

Citylets operate Scotland’s premier residential lettings site with over 50,000 properties per year from over 400 local agents. The Citylets quarterly rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers.

The report and associated rental maps are available for download at Citylets Rental Reports.

Number of new mortgages in Scotland up 24 per cent last year

  • Rise in mortgage demand fuelled by appetite to buy homes with more space, and the Land and Buildings Transaction Tax (LBTT) holiday
  • There was a 22 per cent increase in first time buyer mortgages, and a 27 per cent increase in mortgages for people moving home in 2021 compared to 2020
  • The loan-to-income (LTI) ratio for all homebuyers hit its highest level in 2021

Demand for homes with more space during the pandemic helped drive a 24 per cent increase in new mortgages in Scotland in 2021. Figures from UK Finance show that there were 70,190 new mortgages approved during 2021, up from 56,450 in 2020.

The total overall new mortgage figure is made up of first-time buyer mortgages and homemover mortgages:

  • First-time buyer mortgages were up 22 per cent to 35,100 (2020: 28,740). This is also up from the pre-pandemic level of 32,630 in 2019.
  • Homemover mortgages were up 27 per cent to 35,090 (2020: 27,710). This is also up from the pre-pandemic level of 33,620 in 2019.

At the same time, the loan-to-income (LTI) ratio for homebuyers hit its highest level, reflecting the strong growth in house prices.

The LTI ratio is the number of times greater the amount a mortgage is compared to the total income of the borrower. For first-time buyers in Scotland this reached 3.24 in the final quarter of last year, while it was 2.97 for homemovers.

This is compared to an average LTI of 3.59 and 3.37 for first-time buyers and homemovers respectively across the whole of the UK.

Lee Hopley, Director of Economic Insight and Research, said: “Appetite to buy or move home was up last year with demand boosted from the LBTT holiday and changing housing needs from the pandemic.

“The increase last year follows suppressed activity in 2020 at the start of the pandemic, but it’s notable that homebuying numbers in 2021 also exceeded those in 2019.

“We expect to see a return to a more stable mortgage market this year with continued appetite to buy property; however, the pressure on real incomes from rising inflation is likely to bear down on effective demand.”

RCEM Scotland: Performance deteriorates further as four-hour target falls to record low

The latest Emergency Department performance figures for Scotland published by the Scottish Government yesterday for July 2021 show that performance has deteriorated once again with four-hour performance reaching its lowest since records began, and the number of patients delayed in major Emergency Departments continues to rise steeply.

In July 2021 there were 114,392 attendances to major Emergency Departments across Scotland. This is a three per cent decrease compared to June 2021, an 18% increase when compared to July 2020.

Four-hour performance reached its lowest since records began, having deteriorated for the third consecutive month. 79.5% of attendances to major Emergency Departments in Scotland were seen within four hours. 23,493 patients were delayed by four-hours or more in a major Emergency Department, this is the highest figure since records began.

This is equal to more than one in five patients delayed by four hours or more in a major Emergency Department. The number of patients delayed by four-hours or more reached its highest ever figure having increased for the fifth consecutive month.

In July 2021, 755 patients spent 12-hours or more in a major Emergency Department, this is the highest figure since February 2020. This is nearly a 50% increase on the previous month, June 2021. It is a 3,000% increase compared to July 2020 and it is a 200% increase compared to July 2019. The number of patients delayed by 12-hours or more increased for its third consecutive month.

Data also show that 3,477 patients spent eight hours or more in a major Emergency Department. This is the second highest figure since records began. It is an increase of 50% compared to the previous month, June 2021.

It is an increase of over 1,000% compared to July 2020, and it is an increase of 200% compared to July 2019. The number of patients delayed by eight-hours or more increased for its third consecutive month.

Dr John Thomson, Vice President of the Royal College of Emergency Medicine, said: “These figures show an ongoing deterioration in performance. Current pressures are equal to or worse than normal winter pressures – but these figures are for July.

“Among staff there is serious concern and low morale, winter is fast approaching and quite simply there is low confidence that our hospitals and staff are going to be able to cope.

“The number of patients delayed in Emergency Departments has risen steeply for three consecutive months, the pressures on this trajectory could lead the health service into a crisis.

“It is unacceptable that patients are delayed for so long, in one Emergency Department a patient was delayed by 48 hours – these are dangerously long waits that are likely to adversely affect patient outcomes.

“We have a duty to keep patients safe and treat them quickly and effectively. The current challenges are hindering our ability to achieve that, and for both patients and staff alike it is incredibly difficult.

“The entire health service is under severe strain. Our primary care colleagues are facing record demand, the elective care waiting lists continue to grow, all departments and specialties are facing these unprecedented challenges.

“Yet, while demand is high, the numbers of patients are not the challenge – the challenges stem from capacity issues, across-the-board workforce shortages, and the limitations and deterioration of hospitals and equipment – resourcing has not met demand for some time.

“It would be irresponsible to look on these consistently decreasing monthly performance figures and not recognise the potentially looming crisis fast approaching this winter. Now is the time for an appropriate response.

“We need the Scottish Government to take action, to develop and communicate a joined-up plan on how the health service is going to manage ongoing demand and prepare the workforce, hospitals and Emergency Departments for the upcoming winter.”