Record number of applications for rental properties in Inverness due to low stock
The rental market in Inverness and surrounding areas is experiencing ‘unprecedented supply and demand issues' with record numbers of applications being put in for what is available, according to letting agents.
For prospective tenants looking for a private property to rent, there are, on writing this, only SEVEN properties available. For a two-bedroom home, the average rent price comes to £850, with letting agents receiving between 15-30 viewing requests per property.
The shortage is believed to be due to increased legislation surrounding rental properties including the Eviction Ban and Rent Increase Cap. Additionally, increased mortgage rates – with two and five-year fixed mortgage rates sitting at their highest levels in seven months is playing a role.
Vicky Smith, lettings manager at Home Sweet Home estate agents in Bank Street, said: “The rental market in Inverness and the surrounding area is experiencing unprecedented supply and demand issues making it very difficult for prospective tenants to find suitable and affordable properties.
“Some of our landlords are selling their properties as they rely on the rental income to cover the cost of their mortgage payments, as well as to fund repairs and improvements to their property.
“Their mortgage payments may have increased, and they are unable to increase the rent by more than three per cent as per the current guidelines and have therefore decided it is no longer viable to rent them out.”
Sarah-Anne Gow, lettings department manager at Macleod and MacCallum in Queensgate, said: “The number of rental properties coming to the market is particularly low, with one of the main factors being landlords deciding to sell their rental properties due to the Scottish Government Cost of Living (Tenant Protection) (Scotland) Act 2022 which has now been extended to March 31, 2024.”
On top of legislation and house sales, the rental shortage is also due in part to investors deciding to turn their properties into holiday lets instead of long-term rentals. There are currently 40 properties in Inverness available to rent on Airbnb for the month of July.
Ms Smith added: “We are receiving a record number of enquiries for any new property we advertise to rent and we often see the same people enquiring for different properties over a period of months as they are struggling to secure a property.
“We are finding more people are choosing to relocate to the area for work or they work remotely and this combined with less properties becoming available to let is causing many people difficulties in finding a suitable rental property.”
For those looking to receive social housing, there is currently an overall total of 6427 on the Highland Housing Register and 2572 on the transfer list.
The Highland Housing Register is in operation within the region, which is a single housing list shared between Highland Council and the five partner social landlords.
Gail Matheson, chief executive at Highland Housing Association (HHA), said: “The demand for homes across Highland communities outweighs supply, which subsequently can create detrimental impact to local economies.
“At HHA, we have recently helped to deliver a number of new homes available for private and mid-market rents in partnership with the Highland Council and Scottish Government.
“The high number of enquires into available homes tells us that the demand is there, and whilst we are helping to bridge the gap, more homes are required to retain Inverness’s status as a vibrant and attractive place to live and work in.”
According to Macleod and MacCallum, the average rental price is:
- one-bedroom property: £575
- two-bedroom property: £850
- three-bedroom property: £1000
If someone was on a Housing Benefit Allowance, their rent would not be covered in these prices, as weekly the allowance would be £97.81, £126.58 and £146.14 for a one, two and three bedroom home respectively.
