Edinburgh short term rentals – is the bubble bursting?

As the days get longer and the snow continues to melt the Edinburgh lettings industry will jump back into action this week with the usual demands and preparations for summer rentals. From student lets to short term holiday lets and of course the Edinburgh festival rentals.

The emergence of AIRbnb type rentals have become very popular but I wonder if the bubble is beginning to burst in Edinburgh?

Is your short term Edinburgh rental as busy as it used to be? I am regularly hearing that bookings are slowing down and voids are creeping in due to the sheer number of available short term properties.

AIRbnb started as a platform to advertise your spare room to holiday makers and is now a global force to be reckoned with. However, Edinburgh is starting to see resistance from the powers that be and I think before long Edinburgh Council (EC) and HMRC will be cracking down on AIRbnb landlords.

Several European cities (Paris, Berlin and Barcelona to name a few) have already been dealt a blow by their governing bodies to reduce/restrict the time short term lets can run for while handing out heavy penalties when rules are broken. It is also common knowledge that EC are in the process of reviewing the market place to determine what it believes is best for the city.

There is a report almost every week in the local press about short term lets and their affect on the city and local residents. Many property owners run AIRbnb lets without any smoke detectors, gas checks or any thought for safety whats so ever! EC are on to this.

HMRC are very aware of the number of short term landlords in Edinburgh and lets be honest here folks; it’s easy to upload an advert and cash in on the thousands of holiday makers pounding the streets of Edinburgh consistently throughout the year. The government are after their pound of flesh.

I blogged previously about the introduction of the new PRT which brings its own changes to the Festival market in 2019. The Edinburgh rental market is going through major changes at present and you have to be adaptable if you are going to survive!

At ACE Property we specialise in long term management however we do manage numerous Festival lets during the August period for existing landlords. So I am not just a long term agent trashing the short term market!

I am merely getting it out there that AIRbnb can be great if you are near Edinburgh Castle, have cheap management and running costs and can handle whatever EC and HMRC are planning.

But if your business model is going to be compromised it is worth looking at other options or plan to adapt to any changes before it’s too late.

Written by Alan Nash – alan@acepm.co.uk

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

Spring activity boost pushes asking prices close to new record

The average asking price of property coming to the market rises by 1.1% (+£4,207) this month to £372,324, just £570 short of the record in May 2023, while the annual rate of price growth is now +1.7%, the highest level for 12 months: A key factor behind this growth towards a near-record average price is…
Read More
Breaking News

Weekly News Roundup – 19/04/24

A roundup of the week’s top property and proptech news stories in partnership with Proptech-X Table of Contents Ascendix deep dives into the world of the AVM CEO Adam Pigott on tour in Norfolk with tlyfe App VTS Activate Multifamily launches   Ascendix deep dives into the world of the AVM This month Yana Yarotska from Ascendix…
Read More
Breaking News

Breaking Property News – 18/04/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Scotland to get to Net Zero by 2045 in stunning U-turn Because of its serious implications here in full is the Scottish ‘apology or explanation’ why it thinks it is OK to let the planet burn for the next two decades. Net Zero and…
Read More
Breaking News

Breaking Property News – 17/04/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   CEO Adam Pigott on tour in Norfolk with tlyfe App Full disclosure CEO Adam Pigott and his team are one of my earliest clients, so it is always a pleasure to hear what they have been getting up to. And this week they were…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker

Headlines The average 5-year fixed mortgage rate is now 4.84%, up from 4.45% a year ago The average 2-year fixed mortgage rate is now 5.23%, up from 4.77% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.77%, up from 4.46% a year ago The average 60% LTV 5-year fixed mortgage…
Read More
Rightmove logo
Breaking News

Rightmove comment on inflation reducing to 3.2%

UK inflation slowed less than expected last month, making traders and economists more cautious about the likely pace of interest rate cuts. Matt Smith, Rightmove’s mortgage expert said: ‘It’s positive to see inflation continuing to fall this morning, albeit not by quite as much as expected, as the blocks continue to build towards the anticipated…
Read More