Student Rents in Edinburgh06 May 2016
It’s that time of year again… the HMO properties are all becoming available, boards are popping up in the usual traditional hotspots, Brunstfield, Marchmount, Tollcross and tenants minds are turning to what they are going to do and where they are going to live come the summer months.
Edinburgh has a large student catchment and with one of the strongest rental markets in Scotland, students can expect to pay around £400 pcm each; It may well be more.
In the past, there had been a large number of parents opting to buy properties for their children to live in whilst they completed their studies and often this would prove more economical for parents. Paying less in rent for their children each month and bringing in a reasonable amount from their flatmates to contribute towards the mortgage payments.
In a larger property it could mean that the HMO license was/is not necessary (dependent on the ownership and who is living there). Further benefits included a good standard of accommodation for their children and a strong and secure financial investment.
Following the down turn in the market however, there has also been a down turn in this type of investment but are we set to see a return to this (albeit in a perhaps more sensible manner)?
A number of changes suggests that we will see a return to parents purchasing properties for their children to live in whilst at University;
- Stronger overall capital growth
- Changes in pension allowances come April
- Shortage of good quality property
Dependent on where students are studying, will perhaps be dependent on where parents may look to buy and no doubt the hotspots are always going to be desirable however there are some other great areas that provide good returns. Properties close to city centre, that never fail to attract lots of enquiries include Dumbiedykes, Tollcross, Willowbrae. For Heriott Watt, the fringes of Colinton provide fantastic properties and Musselburgh has plenty of great buys for students at the colleges and Universities close by (Queen Margaret and Jewel and Esk Valley).
Fineholm are happy to provide further details for those interested or indeed to advise of specific properties that clients may have seen.
We may well have some for sale too so please get in touch.