Press Releases
Agent Identifies Rental Locations with Capital Gains
Date: 01-January-2006
Morningside, Marchmont, Bruntsfield and Newington continue to be the top spots for rental demand in the capital, according to leading letting agent, Charles White Ltd.
The firm, which has been monitoring Edinburgh’s residential rental market, says that there is good demand for all property types in these areas while well presented properties in many other locations near to the city centre are also letting well.
David Hutton, Operations Director, Charles White Ltd, said: “The demand for property in Edinburgh’s private rented sector has continued to firm over the past 18 months and enquiry levels from prospective tenants are good which has resulted in a good conversion rate.
“In general, the market is stable although in some circumstances a shortage in supply of certain property types has resulted in competition from tenants.”
Locations which combine good access to the city centre, aligned with close proximity to work, university or college create the strongest tenant demand. A typical criteria from prospective tenants when searching for a suitable property is based on the journey time by foot from Princes’ Street, while for students the allure is more about wanting to stay in an area where their college and university friends are already staying. Being close to the city centre with city centre life and activity is an important factor for many private rented sector tenants.
On property size, David explains: “There is generally an under-supply of affordable one-bedroom properties which are also close to the city centre. In addition, larger four and five bedroom properties with Houses in Multiple Occupation (HMO) licenses are in short supply within typical student areas such as Marchmont and Bruntsfield. The rental market predominantly comprises two and three bedroom properties which have also been letting well however the prospective tenant now has a good selection of quality two bedroom properties in areas which are part of regeneration projects such as Granton and Leith.”
The majority of properties managed by Charles White Ltd are leased on six month short assured tenancy agreements which thereafter can continue on a month to month basis through a process known as tacit relocation (silent renewal). According to Charles White Ltd, there has been a steady increase in the number of tenants deciding to continue the lease after the initial six month lease period. David Hutton explains: “While it is difficult to know why this is, there are a number of influencing factors such as tenants now being more selective at the outset, a shortage of suitable alternative available properties within a specific area and, with high capital values, it is taking longer for many tenants to embark on the owner occupier property ladder.”
Charles White Ltd believes high house prices mean continued demand for rented stock and the recovery in the rented market is good news for investors, especially those looking for an income stream in their investments.
“The Edinburgh private rental market is in good health,” stresses David, “however, it is important for prospective landlords and tenants to seek advice from professionals such as Charles White Ltd for market recommendations and up to date market advice.”
Established in 1840, Charles White Ltd is the oldest property management company in Edinburgh, specialising in property letting and the management of the communal parts of residential developments. Charles White Ltd has around 30 property professionals, currently based in offices in both Edinburgh and Glasgow.
-Ends-
For further information
Lisa Nicholson
Beattie Communications
Tel: 01324 602563