Development managers Bankfoot APAM have announced a consultation on plans to transform The Gyle shopping centre into a new ‘town centre’.The proposals are a radical departure from previous plans to extend the centre.
The Gyle was originally opened in 1993 after an investment of £68million. It quickly became one of the most successful shopping destinations in the east of Scotland and was extended soon after.
Previous owners had brought forward plans for small extensions for new retail units and a cinema, but these were rejected last year by the City Council.
Options now include a fully refreshed and enhanced retail offer, major new housing and office space on a site that has some of the best public transport links in Scotland and in an area (west Edinburgh) where up to 18,000 new homes are already planned.
The concept is to create a new town centre where people will live, work, shop and enjoy their leisure time in one of the most sustainable communities in Scotland.
The initial ideas reflect the fact that whilst The Gyle was once at the fringe of Edinburgh, it is now at the heart of one of Scotland’s fastest growing residential and commercial districts.
The options being consulted on include:
A new community in which people can live, work, shop, rest and play within easy reach of the city centre and countryside
A renewed and revitalised retail offer with enhanced facilities for click and collect, home delivery and other services
New homes for families and professionals that bring people to live more closely to their jobs to encourage more public transport use, cycling, and walking
A new east/west ‘green link’ that provides better and safer walking and cycling facilities and new public green space
Improved access to the existing Tram, Bus and Rail services that run through and around The Gyle
Chris Moore, Managing Director at Bankfoot APAM, said: “When the Gyle was built it was a leading modern shopping destination. However, we are now looking at a new normal that is very different for shopping and living.
“The creation of a new urban city district will help transform the visitor experience and bring many more new residents, workers and customers to the shops and facilities.
“Increasingly people will travel by public transport and the facilities need to reflect that new normal. We have seen the changes that the new St James development in the city centre is making to people’s shopping experience and our aim is to deliver better and higher quality shopping, rather than just increasing floorspace. We have also studied the quality of the proposals for new homes and offices at the nearby Edinburgh Park.
“Edinburgh is changing, and west Edinburgh is changing faster than almost anywhere in Scotland and our plans must reflect sustainability issues and respond positively to those changes. Looking ahead we should consider how best to serve our customers and meet their growing concerns about the environment. A more balanced community is what is proving to work best.
“We will be consulting local residents and communities on our new vision in the near future, and we look forward to starting the regeneration and revitalisation of The Gyle in a way that makes it an even more special place for many more people. The Gyle can again be one of the finest shopping destinations in the country, but our ambition is to make it one of the finest places to live, work and play as well.”
The concept is to create a new town centre where people will live, work, shop and enjoy leisure time, all in one of the most sustainable communities in Scotland.
The plans also include a new east and west ‘green link’ for safer walking and cycling facilities, along with more public green space, as well as improved access to the tram, bus and rail services that run through and around The Gyle.
Speech by the Social Justice Secretary, Shona Robison, opening yesterday’s Tackling Poverty and Building A Fairer Country debate
Presiding Officer, I am pleased to open this debate on the urgent need for us to tackle poverty and build a fairer, more equal country.
We must seize the opportunity, build upon our strong efforts to date, and use every lever at our disposal to bring about the change needed to tackle this problem.
We already invest around £2 billion each year in support for people on low incomes, including over £672 million targeted at children. We have a strong focus on those at greatest disadvantage, including disabled people. And we are supporting innovative action with our £50 million Tackling Child Poverty Fund.
But we must do more. That is why we have committed a wide range of ambitious action to be delivered in the first 100 days of this Parliament – maintaining the tremendous pace taken of change throughout the COVID pandemic.
This is a priority across all Ministerial portfolios. No one action will bring about the change needed, it needs all parts of government and broader society to work together and to impact the drivers of poverty reduction – increasing household incomes from work, reducing costs on essentials and maximising incomes from social security.
The eradication of poverty and building a fairer more equal country must be a national mission for government, for our parliament and for our society. We must try, where possible, to unite on this issue and work together to create a fairer Scotland.
Backed by over £1 billion of additional funding, our response to the pandemic shows that we can make change happen at the pace and scale required to support people and improve their lives. And we wand to build on this can do approach.
We delivered free school meal support during all school holidays and periods of remote learning for children from low income families – helping to tackle food insecurity during the pandemic. We will continue this whilst expanding Free School Meal support to all primary pupils, which will start within the first 100 days of this Parliament.
Also, in our first 100 days we will complete the roll-out of 1,140 hours of funded Early Learning and Childcare and have set out the next stage of our ambition to expand childcare further and develop a wraparound childcare system, providing care before and after school, all year round. This will make an important contribution to children’s development and will unlock the potential of parents in the labour market.
We will also deliver our £20 million summer programme for pupils, helping children socialise, play and reconnect – an essential investment to support the wellbeing of all children and young people [backed by £7.5 million from our Tackling Child Poverty Fund].
Through two Pandemic Support Payments of £100 to low income families with children we put money directly into the pockets of those who needed it most.
Building upon this approach, we will effectively pay the Scottish Child Payment through introducing bridging payments of £520 for families not yet eligible for the Payment, with £100 to be paid to families this summer. We will also provide £130 to every household who received Council Tax Reduction in April, reaching around 500,000 households.
I am pleased I can also make two announcements.
First, building on the practical support we offered during the pandemic, we will be providing the British Red Cross with a further £250,000 to continue their cash-first crisis support to those most at risk of destitution. This includes help to those impacted by the UK Government’s hostile policies that exclude them from most mainstream supports including the Scottish Welfare Fund.
And secondly, in recognition of the importance of listening to families affected by poverty, we will trial Family Wellbeing Budgets to put families firmly in control of the support they need. This new support will be delivered in partnership with the Hunter Foundation and will help to improve people’s wellbeing and capabilities.
Presiding offer, where we have the powers we are making a difference to people’s lives.
Nowhere is this more evident than in our approach to housing. Scotland has led the way in the across the UK with almost 100,000 affordable homes delivered since 2007, over 68,000 of which were for social rent. This is making a significant difference to people right across the country, and particularly for families with children.
We want to deliver a further 100,000 affordable homes by 2032. It is our aim that at least 70% of those homes will be for social rent, helping to tackle child poverty and homelessness.
But to tackle poverty effectively we must deliver a fair work future for Scotland, and we are working hard to do just that just now – but we are constrained by the powers available to us.
We cannot accept a future where two thirds of children living in poverty come from working households and where people are forced to rely on benefits to top-up their earnings.
We have to transform workplaces to tackle poverty and long-standing labour market inequalities, such as the disability employment gap and the barriers to employment faced by people from minority ethnic backgrounds.
With full powers over employment we could, as a minimum, ensure that all employees in Scotland receive the Real Living Wage, ensuring that their wages represent the true cost of living.
We could outlaw unfair fire and hire tactics, prohibiting employers from dismissing employees and subsequently re-employing them on diminished terms and conditions, and we could ban inappropriate and exploitative use of zero hour contracts, giving people the certainty about their working hours – ensuring they can plan their lives and incomes.
That’s why I have asked all party leaders to support our request to the UK Government for the full devolution employment powers to this parliament. So we can tackle poverty with the powers we need to make the change.
Social security is also an important tool to tackle poverty, and again those powers don’t lie in our hands. 85% of spending remains at Westminster alongside income replacement benefits such as Universal Credit and Employment and Support Allowance.
If we didn’t already need it, the pandemic further evidenced that the UK welfare system is not fit for purpose and risks undermining hard won progress. This is the system people in Scotland have to rely on and we shouldn’t have to mitigate against polices we disagree with like the £80 million we spent last year on Discretionary Housing Payments to mitigate the bedroom tax in full and support people with housing – we could be investing in other anti-poverty measures. If we had the powers here we would be able to do that.
The removal of the £20 uplift to Universal Credit is a callous act which will push 60,000 families across Scotland, including 20,000 children, into poverty and will result in families unable to work receiving, on average, £1,600 less per year than they would have done a decade ago – a decade ago – in 2011.
That’s a massive threat to the progress we could make here. We could be delivering the doubling of the Scottish child payment with one hand, only to see it removed by Westminster welfare policies with the other. Surely there is no-one across this chamber that can think that isin any way a good idea or a fair system?
We need to make significant investment into the pockets of those who need it most need. The Scottish child payment does that. That’s why it’s so important.
We have urged the UK Government to make the changes needed and to deliver a social security system which is fit purpose – scrapping harmful policies such as the two child cap, the rape clause, the benefit cap and 5 week wait under Universal Credit. Unfortunately, our calls, alongside many charities, organisations, and even the UN Poverty Rapporteur have been ignored. It’s time for full powers to come here so we can make the difference.
We have already shown we can make a difference – a public service based on human rights with respect and dignity at its heart and viewed as an investment in the people of Scotland. Principles we enshrined in law.
Through our powers, we are tackling child poverty head on, with the Scottish Child Payment, which currently pays £40 every four weeks for every eligible child under 6. We are committed to doubling this to £80, making even greater impact.
Alongside our Best Start Grant and Best Start Foods we are providing over £5,300 of direct financial support for families by the time their first child turns six and further for subsequent children as we don’t put a cap on children. These payments are making a real difference to low income families, helping them to access the essentials they need.
That support is unmatched anywhere else in the UK.
Presiding officer, our next steps will build on the strong foundation we have set, and will be taken forward at pace these changes. No one who sits in this parliament, whatever their political beliefs, can underestimate the scale of the challenge that we face.
I want to take that forward and I’m pleased to work with anyone across this chamber who wants to join me in doing that.
Investment in Low Carbon Urban Housing and City Centre Redevelopment across Edinburgh and Glasgow drives ambitious growth plans
Artisan Real Estate is strengthening its market position in Scotland with the announcement of a new management team as the developer moves forward with its £140 million investment plan focusing on low carbon city centre residential redevelopment across Edinburgh and Glasgow.
Experienced property professional David Westwater will join Artisan this month as Scottish Regional Manager, following 40 years of industry experience including Frasers Property UK, Interserve plc and most recently, as Development Director at Robertson Property.
Westwater (above) will help take forward Artisan’s ambitious plans to progress low carbon housing development with mixed-use regeneration across prime city centre brownfield sites – including a £98 million residential investment for Edinburgh alone.
Building on the existing expertise, Artisan is also currently recruiting a Scottish commercial and technical manager to further add to the team’s expansion, complementing the dedicated locally based sales and marketing team.
Artisan has witnessed a significant expansion of its home-building operation in Scotland during the past 12-months, building on its more established track record as one of the UK’s most recognised and award-winning city centre regeneration specialists.
The developer will shortly begin construction on Rowanbank Gardens, an industry-leading, sustainable residential development delivering 126 high-end apartments in the Corstorphine area of Edinburgh.
The development, on a former brownfield site, provides smart energy-efficient design geared to achieving low to zero carbon ratings whilst responding to the rapidly changing requirements of home buyers and the wider community following lockdown.
Artisan’s first residential development in Scotland, the 180-apartment Canonmills Garden overlooking the Water of Leith to the north of Edinburgh city centre, has now sold 85% of all available properties as it approaches completion later this year.
Welcoming the expansion of its Scottish operation, Artisan’s UK Property Director Clive Wilding, says: “These are exciting times for Artisan Real Estate in Scotland, and the strengthening of our team reflects the significant progress we have made during the last 12 months, despite the very obvious challenges faced during lockdown.
“Our current focus is developing prime brownfield sites across city centres in Edinburgh and Glasgow, delivering low carbon, multi-tenure housing with no fossil fuel, linked to high quality external spaces and integrated with a range of green transport options.
“We are delivering niche urban developments in the most exciting parts of the city centre, creating a high-value premium product for a wide range of homebuyers. And we have a very exciting residential pipeline and are actively identifying and securing new opportunities across Scotland’s major city centre areas – a process which will be hugely boosted by our expanded dedicated residential and commercial Scottish operation.”
Artisan is also consolidating its market position as an urban regeneration specialist with a number of high-profile mixed-use commercial redevelopment projects across Scotland.
Construction work on the £80 million transformation of the Custom House building in Glasgow overlooking the River Clyde continues apace with a four-star, 294-bed Clayton Hotel and a 162-bedroom Adagio Apart-Hotel set to create a vibrant riverside quarter when it opens in 2022.
Plaudits are still being received for Artisan’s £250 million New Waverley development (above) at the heart of Edinburgh’s Old Town, completed in 2020.
The development’s Queen Elizabeth House, now the flagship UK Government hub now home to 2,900 civil servants, was recently recognised by the British Council for Offices and was awarded its Innovation Award, gaining national profile for the development.
Jaco Jansen, Artisan’s Chief Executive Officer adds: “Artisan has an amazing opportunity in Scotland to set a new benchmark for high quality urban regeneration in sensitive city-centre environments – whether it be commercial, residential or mixed-use. This supports our other regional businesses, each with a similar focus in Bristol and Leeds.
“Our track record in Scotland has given us a strong understanding of the importance of high quality placemaking, which is at the heart of all Artisan’s developments. We are an ambitious and hungry company with an increasing appetite for bespoke developments in the best city centre areas. We are looking forward to expanding our footprint across Scotland and the rest of the UK.”
Recently appointed Scottish Conservative Social Justice, Housing and Local Government Spokesperson, Miles Briggs, has today called for a statement in the Scottish Parliament on a post pandemic homelessness strategy, ahead of summer recess.
Today at Holyrood, Lothian MSP Miles Briggs brought to the attention of the First Minister concerns from constituents, that their emergency pandemic accommodation in guest houses and serviced apartments will be terminated as of this week.
Mr Briggs has called for an urgent statement to find out what contingency plans are in place for those who have no information on where they will go, with emergency accommodation being ended.
The First Minister agreed to look into the issue and where the Scottish Government could provide support.
Lothian MSP, Miles Briggs, said:“During the pandemic welcome steps were taken to provide accommodation for homeless individuals and families.
“We all need to work to make sure that we do not see a return to the homeless crisis and look to how we can work to end homelessness and rough sleeping.
“It is important that SNP Ministers have a plan for those who have been given accommodation throughout the pandemic, which will shortly no longer be available.”
Richard Murphy Architects have submitted plans for the MacMillan Hub, the new civic centre for Pennywell & Muirhouse.
The development will see the creation of a Nursery & early years centre, forest kindergarten unit, library & skills hub, 6 homes for social rent, plus extension & reconfiguration of existing North Edinburgh Arts Centre, providing café/bar, box office, theatre & 14 studio spaces.
Richard Murphy Architects explain: “This project has two clients and four distinct user groups. North Edinburgh Arts, a charity operating from a purpose designed building containing cafe, studios theatre etc. and a large early learning centre for nursery school age children, a branch library and eight apartments. These last three elements have the City of Edinburgh Council as client.
“The overall project has seized on the idea of synergy between the library, early learning centre and the arts building so that users of each are encouraged to use all of the facilities with the thresholds between each section deliberately blurred. Indeed, there is a common entrance and foyer facing onto the recently created Macmillan Square.
“The arts centre is to be reorganised so that the cafe sits at the front and becomes a social hub for the entire building. A diagonal sightline connects it to the garden and all of the ground floor with new and existing studios etc. More offices are provided on the upper floor.
“The library is a single double height space with books at the lower level and a skills base above. It shares a staff room with the early learning centre and offices with the arts centre. Large double height windows facing on to the square give views to the left of the arts centre and to the right of the library. The cafe is expected to colonise the entrance area outside in summer.
“The early learning centre consists of six classrooms and a baby’s centre on two floors. The building is organised around a circular cloistered courtyard to give as much space as possible to arrivals and departures. Multipurpose spaces are available to both the early learning centre and the community in the evening.
“Eight apartments on the second and third floors mark the corner between Muirhouse Crescent and Macmillan Square and are accessed from the north elevation. Their living spaces all face south.”
Planning Application No. 17/00314/PPP relating to Phase 4 (Block 4) of the Pennywell Muirhouse Civic Centre for a mixed use development comprising a nursery (class 10), library and skills hub (class 10), arts centre (class 10), flatted dwellings (sui generis), landscaping, access, parking, drainage and other associated development.
City of Edinburgh Council Leader, Adam McVey said:“The new building is an important part of the £200million regeneration of Pennywell and Muirhouse that’s already seen significant investment by the Council and its partners, including Scottish Government to build new Council houses and affordable homes build a community with strong local facilities.
“Jointly led by the Council and North Edinburgh Arts, this is a great example of community empowerment showing how great value can be added to an area. It supports our landmark priorities as a Council to end poverty in Edinburgh by 2030, as well as enhancing wellbeing and equality for our residents.
“Key aspects include the new local library which we hope will act as a community living room, reaching out to everyone. The new building also creates the opportunity to work closely with the new nursery. To have as much interaction with the children, parents and staff as possible – providing tailored events and sessions especially for those using and working in the nursery.”
Council Depute Leader, Cammy Day said:“The North Edinburgh Regeneration project is a major success story for the area, for the city and for Scotland and it’s so exciting to see this final element hitting a major milestone.
“This joint project with North Edinburgh Arts will create a unique facility at the heart of the community. The new Early Learning and Childcare Centre will provide quality and accessible early years spaces for local children.
“This will allow us to meet our commitments to making early years provision more flexible, to fit family needs, and deliver 1,140 hours a year of free early learning and childcare for all three- and four-year olds and eligible two-year olds.
“As part of the wider regeneration of this area we’re delivering 1,000 affordable homes as part of our pledge to build 20,000 affordable new homes in the city by 2027, which will make a substantial difference for people seeking safe, permanent homes in Scotland’s Capital.”
Chair of NEA, Lesley Hinds, said: “This new capital project will allow the organisation to flourish, alongside Council provision, and bring a first-class facility to Macmillan Square.
“NEA is a special place for the community of North Edinburgh and has been a trusted community anchor providing emergency food and support throughout the COVID lockdown. Completing the Community Asset Transfer is a big step on this exciting journey. The enthusiasm shown by our community has kept us going through some difficult times and we’re looking forward to building on this support to bring a truly inspirational place to the heart of Muirhouse.”
The new library will give an opportunity to create joint activities with the other services – providing summer activities, expanding bookbug and storytime sessions, to creating more adult learning opportunities. In addition, the local library will be a trusted and welcoming community space, a place people feel comfortable using as individuals or as a connected group: a place of connection.
The community hub will offer young people a place to develop skills, confidence and self-esteem, a safe and inspiring place for local families and children, and a place where older people will feel part of a connected and supportive community.
This accessible, welcoming and much needed community space uses environment-friendly build and innovative design techniques. The re-developed and extended venue reflects current community aspirations, whilst being flexible enough to respond to future changes in demand.
Prior to the Covid-19 pandemic NEA offered over 35 hours of creative workshops each week, most with a family focus, alongside a wide range of other events from singing groups to circus skills workshops, exhibitions, community theatre, film clubs, and festival events.
The venue is also home to Muirhouse Link Up, the Pennywell Pantry, North Edinburgh Drug and Alcohol Centre, and the Tinderbox Orchestra, all working to serve the most disadvantaged children, families and individuals in the North Edinburgh area. The extended NEA will also provide extra office space and facilities for community organisations.
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The City of Edinburgh Council’s affordable housebuilding programme continues apace with construction starting this week in Wester Hailes.
A further 49 new affordable and energy efficient homes will be built in phase two of the Dumbryden Gardens development on the former Dumbryden primary school site. This follows completion of the Dumbryden Gardens phase one development in November 2019.
Led by construction partner Robertson Partnership Homes, procured through SCAPE Construction, the site combines 35 homes for social rent and 14 homes for mid-market rent and includes a number of wheelchair accessible homes.
This development, to be completed in Winter 2022, is part of the City of Edinburgh Council’s housing building programme which, along with housing association partners, will contribute to the delivery of 20,000 new homes across the city by 2027.
Councillor Kate Campbell, Housing, Homelessness and Fair Work Convener, said: “It’s great to see construction starting on another council-led development with more new council houses getting built. Our house building programme has to meet the needs of our communities and so these homes will be accessible, highly energy efficient and some homes will be fully wheelchair adapted.
“There are so many families in need of permanent, affordable housing, so it’s good that next year these homes will be ready for families to move in and be part of this growing community.”
Councillor Mandy Watt, Vice Convener, said: “I’m looking forward to seeing the development start to take shape over the course of next year, and bring a range of benefits for the local community through revitalising a disused site and through additional initiatives delivered by our contractor, Robertson Partnership Homes, as part of the project.
“Edinburgh has one of the most ambitious house-building plans of any local authority in the UK and these are great example of quality Council-led homes that will be affordable to rent and live in long term.”
Matt Collins, managing director, Robertson Partnership Homes, said: “Last year we completed 263 new homes for the City of Edinburgh Council’s Small Sites Programme through Scape’s Major Works Scotland framework and are proud to be the delivery partner for the second phase at Dumbryden Gardens.
“The City of Edinburgh Council is committed to providing high-quality homes and equal housing opportunities for its residents. The inclusion of sustainable features which will further benefit the residents underlines the Council’s commitment to the natural environment and the wellbeing of the communities it is creating.
Mark Robinson, group chief executive at SCAPE, said:“We’re delighted that Robertson Partnership Homes and the City of Edinburgh Council will be delivering energy efficient homes for both social and mid-market rent.
“SCAPE is fully committed to helping clients achieve their net zero carbon target.
“Whilst the need for social and affordable housing is ever pressing, it’s important that new homes are delivered which help address the environmental challenges we face, and it’s encouraging to see the City of Edinburgh Council future proof their housing stock.”
Nationwide’s Community Grants Programme now accepting applications from charities and projects helping solve housing issues across UK
Successful applicants are awarded grants ranging from £10,000 to £50,000, decided on by Nationwide’s Community Boards comprised of Nationwide members and employees
Nationwide pledges to make £22m grant funding available to housing charities and organisations by 2023
Nationwide, the world’s largest building society, has announced that applications for its 2021 Community Grants Programme are now open.
After a challenging year for everyone, but especially for those who are most vulnerable in our society, having a place fit to call home is more important than ever before. The programme forms part of Nationwide’s commitment to supporting communities by giving at least one per cent of its pre-tax profits to good causes.
The Community Grants Programme tackles local housing issues by giving charities, community land trusts and housing co-operatives access to grants between £10,000 and £50,000. Applications are open to any organisations that provide solutions to help:
Prevent people from losing their home
Help people into a home
Support people to thrive within the home environment
Nationwide’s Community Boards, made up of community-minded colleagues working at the building society and it’s members, come together to decide which projects should be awarded a grant, and in doing so are supporting their own communities to find solutions to the housing crisis.
Beneficiaries of Community Grants include organisations that have helped to support vulnerable families with young children in crisis in Northern Ireland, supported women who have been sexually exploited to navigate the housing system in Luton and those who are homeless and facing poverty in Kingston.
There are currently 11 local Community Boards across the UK. Since 2018 Nationwide has funded 350 projects and awarded £14 million in total through the programme and in 2020/21, just under £4 million in grants were awarded to 99 projects. By 2023, £22 million will have been awarded in total.
This year Nationwide is capping the amount of Community Grant applications it will accept, meaning approximately one in four applicants will be successful. If the cap isn’t reached, applications will close at 11pm on Monday 21 June.
“Everyone should have a place fit to call home which is why our Community Grants Programme is so important to us. As a member owned organisation, we have always seen it as our place to help facilitate positive changes in local communities, and we are encouraging charities to apply to our Community Grants programme.”
One year on since the housing market reopened, and the Covid-led decline in rental demand for city centre housing is bouncing back
As the UK emerges from lockdown, renter demand is up 26% in central Edinburgh, 12% in central Leeds, 7% in inner London and 5% in central Manchester in the month since Easter
London’s rental demand is being fuelled in part by a sharp improvement to affordability; with rents down -9.4%, affordability is running at a ten year high
Average rents in the City of London, Kensington and Chelsea, and Westminster, are running at their lowest for a decade, with average Westminster rents running at £2,259 pcm – down from £2,617 pcm in February last year
By contrast, UK rents outside of London are up 3% on the year, signalling the highest level of growth in four and half years
Rents are rising fastest in the North East (+5.5%) and the South West (+5.3%) yoy – the strongest rates of growth in a decade in these regions amid increased demand and constrained supply
Rental performance outside of London is being driven by a 59% uptick in demand for rental properties in the 28 days to the end of April, compared to the average demand recorded during the same month in the more ‘normal’ markets of 2017 -19
One year on since the housing market reopened and the Covid-led decline in rental demand for city centre housing is starting to bounce back, as the UK emerges from lockdown and affordability for renters improves.
These are the latest findings fromZoopla, the UK’s leading property portal, in its quarterly Rental Market Report:
City centre rental markets finally revived
The impact of Covid was felt most acutely in the city centre rental markets of the UK’s major regional cities. Central Edinburgh, Leeds, Manchester and London were at the forefront of the rental slowdown, as offices remained closed and an extended hiatus in tourism took hold.
Stock moving over from short-term lets into the rental market, and more rental stock coming back to the market amid easing demand, led to a softening in rents in city centres, which are still down by 0.7% in Leeds, -1.1% in central Manchester, -3.2% in central Edinburgh and -9.9% in inner London (see figure 1).
However, the city centre downturn is starting to reverse as the economy opens up, workers start to return to their offices, leisure activities restart, and renters return in search of a rental bargain and restoration of their social life.
Renter demand is up 26% in central Edinburgh, 12% in central Leeds, 7% in inner London and 5% in central Manchester in the month since Easter – and is starting to absorb the supply surplus that characterised the market over the past year.
Figure 1: Rental growth in inner and outer cities in March 2021
Source: Zoopla Research
London’s rental affordability reaches ten year high
Rental declines in London bottomed out in February of this year, down -10% year on year, with overall London rents now running at -9.4%. Average monthly rents are now at the same level as they were in December 2013.
The fall in rents in London over the past year has resulted in rents being at their most affordable for ten years. Average rents now account for 42% of an average single-earner income in London, down from 49% in March 2020, and a peak of 53% in Q4 2016
Average rents in the City of London, Kensington and Chelsea, and Westminster, are running at their lowest for a decade, with the average monthly rent in Westminster at £2,259 – down from a high of £2,617 in February last year.
Many of London’s renters are looking to future-proof current rental affordability, locking in cost savings for as long as possible, with agents reporting an increased number of longer-than-average tenancies (in excess of 12 months) being agreed.
Regional rents rising 3% year on year – but affordability remains unchanged
The rental market outside of London paints a starkly different picture, with rents rising at 3% year on year, signalling the highest level of growth in four and half years (see figure 2).
Despite rent rises, average affordability remains broadly unchanged as wages rebound from the dip recorded last summer, keeping pace with rental growth.
Rents are rising fastest in the North East (+5.5%) and the South West (+5.3%) year on year – the strongest rate of growth in a decade in these regions amid increased demand and constrained supply. However, the North East remains one of the most affordable regions in the country, with average rents absorbing 21% of the income of the average single earner (pre-pandemic, compared to the UK average of 32%.
Northern towns of Wigan and Barnsley are seeing some of the highest rental growth in the country, at 8%, with Rochdale at 7.8%; this outperforms average annual rental growth in these towns of around 1.5% between 2011 and 2019 by some margin.
Current rental performance is being driven by a 59% uptick in demand for rental properties in the 28 days to the end of April, compared to the average demand recorded across the ‘normal’ markets of 2017 -19. In the first quarter of the year, demand for rental property outside of London was 32% higher than the same period last year.
Figure 2
The supply challenge
The supply of rental properties in most markets is failing to keep up with demand, and the new supply of property coming to the market outside of London is 5% lower than in Q1 last year.
Supply constraints are being driven by a multitude of factors. Firstly, many renters were unable or reluctant to exit the rental market and buy a property during the pandemic, limiting the flow of renters out of the sector, and absorbing more supply. At the same time, investment into the private rental market, which is predominantly made up of independent landlords, has not recovered to 2015 levels, before the additional 3% stamp duty levy was introduced for investors.
The number of properties purchased using a buy-to-let mortgage was 45% lower in 2020 than in 2015, and the number of homes in the private rented sector has fallen slightly since 2016 as landlords rationalise their portfolios in the face of tax changes and additional regulation.
Private outdoor space remains top priority for renters
Increased demand for private outdoor space has characterised renter behaviour throughout lockdown, but even as we emerge from pandemic restrictions, it remains a priority.
The proportion of renters searching for rental properties with gardens has doubled since the pre-pandemic period last year. The good news for renters is that nearly half of properties available to rent currently have a garden or access to a shared garden, and the number of these properties available to rent has risen during Q1 to levels seen last summer.
David Ross, Managing Director, Hometrack, comments: ““Rental demand will continue to rise in city centres as offices start to re-open and this, coupled with increased affordability levels in many cases, will start to counter the negative pressure on rents seen over the last 12 months.
“In London, where rents are down 9.4% on the year, a modest reversal in rental declines has begun, but it will be a slow build back to pre-pandemic levels in inner London.
“The recovery will be uneven and we expect new or recently refurbished properties to attract higher levels of demand in H2.”
Half of Edinburgh’s homeowners undervalue their home by an average of £28,351
Two thirds of homeowners across Edinburgh have lost touch with the value of their home
More than half of homeowners in Edinburgh unlocked their ‘hidden equity’ to move to a nicer property
New analysis by Zoopla, the only property portal which offers a free instant online property price estimate, conducted as part of its inaugural Hidden Equity Survey, has found that homeowners in Edinburgh are undervaluing their homes by an average of £28,351.
The Hidden Equity Survey of 2,000 homeowners* who have had their home valued by an estate agent in the past three years establishes for the first time how accurate Edinburgh homeowners’ estimations of the value of their homes really are. It found that just one in three (33%) local homeowners have an accurate idea of the estimated value of their home.
Average home in Edinburgh worth £28,000 more than owners realise
The findings from Zoopla show that almost half of homeowners in Edinburgh (45%) who had their home valued via an estate agent or sold it in the past three years said it was worth more than they thought it was – on average by £28,351.
Bathroom bonus
When asked for their thoughts on why their homes were worth more than expected, two fifths (43%) of homeowners in Edinburgh attributed their good financial fortune to installing a new bathroom. Other popular reasons being given by homeowners in the city for their financial uplift included redecorating (41%) and work on the garden (32%).
Increasingly desired
The practicalities of improving a property aren’t the only reasons for homeowners in Edinburgh to get more for their home than they thought it was worth. Edinburgh becoming an increasingly desirable place to live has also helped to add value to the properties of homeowners, with a third (36%) of homeowners citing desirability of the city for homes being worth more than their owners expected.
The good life
For Edinburgh homeowners who went on to sell their home and benefit from their hidden equity, the financial boost had a significant impact, with the majority (84%) of homeowners saying the additional money ‘improved their lifestyle’. More than half (59%) said they were able to move into a better property than they expected as a result (for example, it had more bedrooms, was in a nicer area, had a garden etc.).
One in ten (12%) homeowners in Edinburgh used their extra cash to go on more holidays and a further one in ten (12%) gifted the money to their children to help their future plans.
Different decisions
For Edinburgh homeowners who did not know the true value of their home until they got it valued by an estate agent, one in three (34%) said they would have made different financial decisions in the years prior if they had been aware of their hidden equity.
For property owners whose home was worth less than they expected, two fifths (43%) said they would have paid off more of their mortgage. Almost a third (29%) would have worked harder to build their savings rather than assume their home was accruing equity that they could draw on at a later date.
One in ten (14%) of homeowners in Edinburgh said they’d have spent less on non-essential purchases like jewellery, watches or expensive presents.
House prices rising
Zoopla has also revealed the latest House Price Index, which studies multiple local housing trends and prices on an annual basis. The data shows that the average house price in Edinburgh is now £241,000, with prices rising by 2.8% in the last 12 months. The data also shows prices in Edinburgh have increased cumulatively by 24.4% in the past five years.
Gráinne Gilmore, Head of Research at Zoopla, comments:“The direction of house prices has long been a staple of conversation around dinner tables across Edinburgh and many homeowners could be in for a lovely surprise if they have their property valued, according to our research.
“Because of the impact of the pandemic, many households are re-evaluating how they want to live and this has had an impact on the local housing market. Buyer demand has soared, racing ahead of supply, putting upwards pressure on prices. House price growth in Edinburgh is currently at 2.8% annually.
“Edinburgh homeowners keen to check up on their property’s value should head to Zoopla’s My Home, where they can see an estimated value range for their property and check for potential hidden equity.
“For those keen to progress with a sale and perhaps unlock hidden equity, they can contact an estate agent using My Home to get an expert market valuation and personalised guidance on how to best navigate this busy housing market.”
Staying on top of a property’s value
As a first step, homeowners can check My Home on Zoopla.co.uk, where they can discover their home’s worth with an instant online estimate based on powerful market data. They can also keep track of their house price estimate and access a timeline of their home’s sales history.
My Home also allows homeowners to track the estimated value of other homes in their neighbourhood, as well as homes they might want to buy in the future. Zoopla is encouraging homeowners to get estate agent valuations of their home – the most accurate way to value a property – to see if they are sitting on more equity than they think.
