Stock shortage risks derailing economic recovery

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19 January 2022

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Stock shortage risks derailing economic recovery - lettings chief

The Scottish private rental market is facing shortages according to one of that country’s most prominent lettings experts.

David Alexander, head of DJ Alexander - now part of the Lomond Group - says that economic recovery is picking up rapidly resulting in increasing demand for workers.

He predicts that this demand for workers will surely trigger a return of many EU citizens and, perhaps from further afield, to meet the need for people to fill these posts in the coming months.

However, there’s a shortage of stock.

He says Rightmove is currently showing just 376 properties available to rent in Edinburgh. In August last year that figure was just over 600 but was as high as 1,900 as recently as June 2021.

“We are seeing unusually high levels of demand for rented property in Edinburgh and elsewhere. Our firm would normally have around 190 to 200 properties available at any one time, but we currently only have 43” says Alexander.

“Enquiries continue to be at record levels and, even though we have new properties coming on the market every day, there is little sign of the demand abating.

“It is now clear that we are emerging from the pandemic and life is beginning to return to normal. This will undoubtedly result in a substantial increase in demand for rental properties as more workers return from other parts of the UK and abroad.”

Alexander adds: “With major events such as the Six Nations rugby, the Open Golf tournament, the Edinburgh Festival, and regular concerts and performances returning this year it is clear that substantial numbers of employees will be required to fill the roles these events create.

“What we will see is a return of many EU citizens who have a right to work in the UK and will return generating enormous demand in the private rented sector. Hundreds of thousands left as the pandemic took hold and I see little reason not to believe they will come back as covid-19 subsides in their home countries and in the UK.”

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