But concern is being expressed that proposed changes to the lettings market in Scotland put forward by the government could adversely affect the private rented sector’s ability to cope with the influx.
On top of this there are students seeking properties to rent when the university term starts and this too could be affected by the plans, according to an analysis report from Lettingstats, part of the online property lettings firm Lettingweb.
The Scottish Government has proposed that assured and short assured tenancies should be replaced by the Scottish Private Rented Tenancy (SPRT) for all letting in the private sector. It would make the current situation where a landlord rents to students during term time then to tourists and Festival workers during the summer without having to end and start a new tenancy impossible.
Lettingstats believes that these new tenancy rules will stop the ability of key providers in the private rental market to offer guaranteed accommodation for both students and festival visitors. It could also affect landlords around the country who rent to students.
It says that the legislation, scheduled for the autumn, will force private landlords, Edinburgh’s universities, and PBSAs to offer unlimited tenancies with no clear end dates, instantly removing these landlords’ capacity to know when they can market their properties to festival performers, visitors and students alike.
‘Private rented housing stock and university accommodation is critical to the success of Edinburgh’s festivals. The new tenancy reform proposals may be well intentioned, but the Scottish Government and City of Edinburgh Council have so far ignored the dire warnings consistently presented to them from across the entire private rented sector,’ said Lettingweb’s head of research, Dan Cookson.
‘Given that the identification of additional Festival accommodation was seen as a key recommendation in the city’s recent festival strategy, it is bizarre that the city would support tenancy reform changes that will immediately put at risk much needed accommodation capacity within the city,’ he explained.
‘Just the prospect of this legislation being introduced is already having a wider impact on the private rented sector. Landlords are starting to move to protect themselves by either transferring their tenancies over to short term only, or even considering disinvesting which would be a disaster as falling supply will inevitably push up prices,’ he pointed out.
‘Ultimately this legislation will have an unintended negative impact upon the availability of housing stock for residents, students and visitors alike. It is hugely disappointing that policy makers are ignoring the stark warnings of the sector,’ he added.
Letting agents are also expressing concern. Stuart Montgomery, director of Rettie & Co, believes the legislation is based on a fallacy that landlords evict tenants from their homes in order take advantage of premium Festival rents.
‘In most cases the use of the property for the Festival period enables student tenants to secure accommodation for the duration of their academic term without being forced to pay for the summer months, provides the breadth of accommodation that performers and production companies require and provides the respective landlords with a sufficient yield for them to maintain an investment in the sector,’ he explained.
‘The removal of the ability to have tenancies with a fixed end date will have a terrible effect on the Festival and student lettings market. Without a fixed end date and therefore the certainty of vacant possession at the conclusion of an academic term, the entire festival and student lettings market will simply cease to function,’ he added.
Tophe Boiseau, Owner of Factotum Letting, said the proposed legislation ignores the concerns of the private rented sector and the University accommodation providers. ‘Everyone has highlighted the catastrophic impacts that these changes will have on their ability to house both students and visitors to the festival,’ he pointed out.
‘This legislation is already having a negative impact upon the sector, rents are rising and property is being removed from the rental market. Scotland is effectively shooting itself in the foot,’ he added.
