Edinburgh rents fall due to shift to work from home and lower demand for Airbnbs

Edinburgh rents fall due to shift to work from home and lower demand for Airbnbs

The shift to work from home and a drop in the demand for short stays Airbnb rentals, along with concerns about Covid rates in urban areas, have reportedly contributed to the drop in rents in Edinburgh.

Edinburgh city center saw the UK’s second-highest percentage decline, after London, with average monthly rents down £ 125 last year, while the number of properties reportedly increased by 109 %.

According to the latest data, there are currently 929 apartments available for rent in the city center, up from 445 for the same month last year.

Average monthly rents fell from £ 1,249 in the fourth quarter of 2019 to £ 1,124 for the same period last year, with an annual decline of 10%. In Glasgow city center, the average monthly rent is now £ 894, up from £ 914 last year.

Commenting on the numbers, ESPC said the increase in working from home and requests for more space is affecting the rental of one-bedroom properties, while realtors have also seen an increase in requests for properties outside of the city center.

Housing officials at Edinburgh City Council said that “it was not a bad thing” that rents were becoming more affordable in the city with Scotland’s most expensive property market.

Search by Rightmove, involving 10 of the UK’s largest cities, found that there was an increase in the number of tenants currently living in a city seeking property in the suburbs.

The most significant changes were seen in London city center and Edinburgh city center, The herald reports.

Nicky Lloyd, ESPC Rentals Manager, commented: “We are seeing one-bedroom rental apartments in central Edinburgh being affected by Covid-19 restrictions over the past year and working from home on the rise.

“People are looking for more space on and off the property, and living in the city center is no longer a problem when many people are working from home. While there has been no mass exodus to the country or the outskirts of Edinburgh, we are seeing an increase in inquiries for surrounding areas.

Councilor Kate Campbell, Housing Officer for Edinburgh City Council, added: “Edinburgh’s housing market has been the most expensive in Scotland for years, so it’s not a bad thing that living in the city center is getting slightly more affordable.

“There will be a number of factors, and I’m sure one of them will be the high number of short-term rentals that had been rented for a big profit and are now coming back into the long-term housing market. .

“But this is good news for Edinburgh. Our housing market needs to be more affordable so people can afford to live and work here. It will also be good for our economy at large. “

Professor John Lennon, Director of the Moffat Center for Travel and Tourism Business at Glasgow Caledonian University, said declining international and domestic tourism had devastated commercial accommodation providers.

He said: “The collapse in visitor demand as we seek to contain the infection globally has caused many older Airbnb properties to re-enter the traditional rental market, creating increased supply and higher prices. low.

“A result that has been accentuated by lower demand from students and visiting workers, as our cities become less busy. “

New rules are expected to come into effect in April, which could result in a fine of up to £ 50,000 for owners if they don’t get a license for Airbnb-style short-term rentals.

Tim Banniester, Property Manager for Rightmove, said the drop in downtown rents would likely be temporary. He added, “The premium that many tenants are usually willing to pay to have the vibrancy of a downtown area on their doorstep has been tempered for now.

“This presents a challenge for some landlords, but also an opportunity for tenants who may be able to make a longer term decision and move into a downtown area now, perhaps with a rental agreement of two. years, at a more attractive rent than at the same time last year. .

“There is no doubt that higher rents will return once life returns to some form of normalcy, but it will be the downtown properties with gardens and balconies that can get the biggest bonuses. “

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