Short-term units should move to traditional rental, …

A leading agent says the shortage of rental properties is now so acute, and set to get even worse, that those renting Airbnb-style homes short-term should consider moving them to the mainstream market.

David Alexander – Managing Director of DJ Alexander, part of the Lomond Group – says: “There is a clear need to encourage more landlords, landlords and investors to enter the private rental sector to meet this unprecedented demand. .

“Perhaps this is the time when those who have made the switch to short-term rentals should consider reversing that decision, especially as the short-term and vacation rental sector is about to suffer additional costs associated with increased regulation.”

Alexander says the situation is particularly acute in his home country of Scotland, where the Private Housing Rental Price Index shows rents rose 2.3% in the 12 months to December 2021.

This compares to a 1.8% increase in England and a 1.5% increase in Wales over the same period. The Scottish figure is the highest annual growth rate since records began in 2012.

Alexander says rents are rising rapidly due to an unprecedented shortage of inventory coupled with an influx of workers as the economy begins to recover from the pandemic and things are likely to get worse before they get better.

A recent report from property consultancy Avison Young predicts Scotland will see substantial growth this year with around 8,500 additional jobs forecast for Edinburgh, which would see a record 382,000 workers in the job market. Glasgow is expected to add 9,600 jobs, taking its employment total to 449,000, which would also be a record.

“Given the pace of recovery and the expected increase in employment to record levels, the supply problem in Scotland is likely to continue, with Edinburgh and Glasgow facing severe shortages this year,” says Alexander.

“These data on the rise [rents] and the limited supply comes at a time when Labor has said it will impose an additional tax burden on the purchase to allow owners to help pay for the upcoming National Insurance increase.

“Once again we see politicians continuing to see the PRS as an easy target for additional taxes without regard to the service the sector provides or, more importantly, how they would replace the housing in which people currently live. tenants if the sector were to shrink. ”

Alexander concludes: “The concern is that the PRS is often seen by politicians as an easy target to win voter approval without consideration for the hundreds of thousands of people who live in houses provided by the sector.

“Current levels of demand should prompt governments to encourage more homeowners and investors to enter the market to cater to this growing market. If nothing is done about this, there is a real potential for shortages in the future and people will be unable to find housing.

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