Guidance setting out private rented sector landlords’ responsibilities for ensuring their property meets updated standards has been published.
From 1 March next year, all private rented properties will be required to have central heating, a kitchen with adequate space and facilities to prepare and store food, and common areas that are safe to use and properly maintained.
Properties will also need a circuit breaker device that reduces the risk of electrocution and fire. Existing requirements for safe gas and electrical systems will be extended to other types of fuel. Similar standards are already in place in the social rented sector.
The guidance also covers the action landlords must already take to prevent damp and mould.
Housing Secretary Shona Robison said: “Landlords have one year to meet our updated Repairing Standard, which will improve the condition of private rented property, make homes safer and ensure consistency between the social and private rented sectors.
“The majority of private landlords will already be meeting these standards. The guidance published today will help landlords better understand their responsibilities and ensure those who do need to carry out works can do so in advance of the 1 March 2024 deadline.
“All rented homes are required to meet standards that ensure they are free from damp and mould, and this guidance will help us to ensure this happens in the private rented sector.”
A leading trade body is urging newly-elected Scottish Councils to embrace investment in build to rent (BTR) and co-living to help address the current housing crisis, addressing nationwide shortages of rental stock and providing additional housing supply to help meet housing targets.
The call comes from the UK Apartment Association (UKAA), which recently launched in Scotland at an event in Glasgow.
BTR is a relatively new model for creating new homes in the UK, where all the properties are built for rent, not for sale and are located in close proximity to amenities, places of work and transport links.
Co-living is a type of communal living in which residents get a private bedroom, with the opportunity to share meals and discussions in common living areas.
Data from the Royal Institution of Chartered Surveyors (RICS) shows that in Scotland demand for rental housing had risen by over a third in the last three months, while supply had dropped by around 50 per cent, leading to an expectation that rents in Scotland will rise faster than in England and Wales.
However, the pipeline for BTR in Edinburgh and Glasgow represents just 6.7 per cent and 10 per cent of current private rented sector households, respectively. There is great capacity therefore for growth given the pipelines in Manchester, Birmingham and Leeds represent 29.6 per cent, 15.5 per cent and 13.1 per cent of current PRS households
BTR schemes in Glasgow include proposals for 324 homes at Buchanan Wharf and 685 BTR and co-Living homes at Portcullis House, with 338 homes at Skyliner and 476 homes at Fountainbridge in Edinburgh.
Brendan Geraghty, CEO of the UKAA commented: “BTR and co-living offer a tremendous opportunity for the thousands of people looking for a good place to rent, as well as councils wanting to revitalise neighbourhoods while solving the housing crisis in their area.
“Scotland is perfectly placed to look to models of living that are already popular across Europe and harness investment from organisations like pension providers to fund affordable, high-quality homes with a long-term value.
“We are witnessing massive demand for a new form of housing because so many people don’t see the traditional housing market as working for them. But the supply just isn’t there to meet the need. Managing rents can’t solve the fundamental issues in the market so it is time to focus on really delivering a supply of sustainable homes in sustainable locations.
“There is an opportunity for newly elected councillors to take the time to really understand and fully embrace BTR and co-living as having a critical part to play in helping to solve the housing crisis, enhancing quality and choice in the private residential sector.”
Stuart Patrick, Chief Executive of Glasgow Chamber of Commerce commented:“BTR and co-living are delivering high-quality housing, which is desperately needed, and will serve to address increasing demand. Innovative approaches to housing such as this are to be greatly welcomed and will also serve to retain and attract skilled young people to our cities.
“Glasgow City Council’s City Centre Living Strategy, for example, outlines a target to double the city centre’s population to 40,000 over the next 15 years and increasing density in the city centre is essential to its long- term success and sustainability. BTR is a key element in delivering this.”
Gillian McLees, UKAA Scotland Chair, commented: “2022 is set to be a pivotal year in the BTR sector in Scotland with the launch of landmark schemes to the public and long awaited buildings becoming operational.
“The UKAA and the UKAA Scotland Steering Committee are committed to the success of this sector and providing the rented homes that Scotland desperately needs.”
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.
Edinburgh Letting Agency Clan Gordon receives nationwide recognition at 2021 allAgents Awards
At the 12 November allAgents Awards black tie event at the Queen’s Hotel in Leeds, Edinburgh letting agency Clan Gordon was named as ‘Best Lettings Agent in Edinburgh’, ‘Best Lettings Agent in Scotland’ and ‘Best Overall Agent in Edinburgh and Scotland’.
The allAgents Awards are the UK’s Top Customer Property Review Awards and each winner is chosen through customer votes.
Amanda Lamb, property expert and allAgents Awards host said: “Coming from an estate agency background I know and appreciate just how important customer reviews are in this competitive industry and what receiving recognition from the industry’s very own ‘Tripadvisor’ will mean to the winning agencies.”
Clan Gordon’s Managing Director Jonathan Gordon said: “All awards are important but ones that are voted for by customers are the most valuable because they are a firm assurance that we’re getting things right.
“To beat all other estate and letting agents in the Edinburgh and Scotland categories to the overall title is an amazing achievement and the Clan Gordon team should be proud of the contribution they have made at an extremely difficult time.
“The pandemic posed huge problems for the property sector, but we met them head-on, quickly adapting to home working for our employees and installing a high-tech new telephone system to ensure customers were not adversely impacted.
“We also switched to virtual viewings and made sure our services continued safely within the guidelines issued by the government. This investment has been recognised with these awards and we are extremely proud of the achievement.”
To find out more about Clan Gordon or to schedule a call visit:
Housing & Economy Convener Cllr Kate Campbell is encouraging residents to have their say on short term lets by taking part in the Scottish Government’s consultation on the regulation of the industry.
