Why I think the increase in the supply of rental properties is an excellent thing for Home and Co, our landlords and the rental market in general in Edinburgh.
As you might know, at Home and Co, we’re passionate about working with great landlords to create homes for good tenants. So, why does the graph below not worry me, but excite me?
Well, first let’s look at what we see here and why? This graph was taken from a recent webinar with Zoopla’s Grainne Gilmore, hosted by ARLA Propertymark and has Edinburgh showing a massive increase in the supply of rental properties in the first half of this year, both in comparison to the previous three years and with current demand.
There are various reasons for this increase in supply. However, the primary and most obvious two are both Edinburgh’s impending stricter laws on Airbnb and holiday lets, along with that global pandemic thing that’s happening right now. Both resulting in a massive number of Airbnb and short term let property being ‘dumped’ onto the long term rental market in a short space of time. This, coupled with the decrease in generally more transient student population with Universities providing most if not all classes online, this has created a very different shape to the graph shown for Edinburgh, in comparison to the rest of the UK.
So, why do I think this is a good thing for our landlords, and the Edinburgh rental market in general? Well, controversially, this IS only good if you’re a good landlord, with a property that is well maintained, which also happen to be the properties generally targeted at the ‘young professionals’ rather than the student population.
As we all know, for far too long, the supply of rental property in Edinburgh has been decreasing, in comparison to demand. In part due to the demand for holiday lets in Scotland’s capital. When supply and demand are inequal, this gives those ‘bad apples’ in terms of Landlords no incentive to maintain their properties, as someone will always need them.
Now, don’t get me wrong, I like Airbnb, I am and have been for many years a super host for my own home, which I have let out intermittently. However, the increasing trend to buy property solely for holiday let has un-arguably left the rental market depleted of many properties that would otherwise be let out as long term homes for Edinburgh residents.
Whilst I am not ‘pleased’ as to the recent reasons for the increase in the supply of good rental properties. This year has been incredibly challenging for so many. I do, however, see it as a great thing in general that the quality of the properties available for rent has risen.
In my view, this can only be a good thing, and whilst this may be a threat to some landlords, it will, I am confident, only serve to help the good property owners shine.
In conclusion, the properties we care for as landlords and at Home and Co are still doing well, they are renting quickly, and to tenants who feel that they are in a property, they can call home long term.
Home and Co Property Management 