Earlier this month, the Scottish Government released their annual Official Statistics Publication for Scotland on private rent increases over the last 12 months.The statistics are alarming: an 11.7% increase for one-bedroom properties, which equates to £68 per month or £816 annually.
Unfortunately, the 11.7% rise experienced by tenants of one-bedroom properties is only compounded by 14.3% and 13.3% increases in two- and three-bedroom properties, respectively. These damning statistics follow on from Scotland’s two largest cities, Glasgow and Edinburgh, declaring housing emergencies only weeks apart. As properties get scarcer in Scotland’s two main cities, prices will only get steeper, and yearly increases observed this year could become the norm.
Stuck in the middle of the squeeze of increasing rent prices and the scarcity of housing are students, who aim to start a new life and take the first step into adulthood by studying at some of the outstanding higher institutions Edinburgh and Glasgow have to offer. However, as student numbers across Scotland continue to increase, so does the challenge of finding a viable and affordable property.
Despite increasing opposition against building more purpose-built student accommodation (PBSA) by some communities, this is an integral part of the solution, not the problem. PBSA’s purpose-built nature allows for the freeing up housing stock to those who need it most and removes competition from the market. By directing students to purpose-built facilities, PBSA creates a ripple effect that releases pressure in the broader housing market, opening opportunities for a range of people who require stable housing and can play a role in helping reduce the 600-day wait some experience in temporary accommodation in Edinburgh.
Recent house-building figures released by the Scottish Government highlight the extent of the current problem, with a 6% fall in completions and a 24% decrease in housing starts. More worryingly for students looking to study in Scotland’s two major cities, “Edinburgh and Glasgow city councils have seen decreases of 23% and 46% respectively in the number of new homes started, compared to the previous year.”
The current situation is untenable as those two cities alone are home to 40% of Scotland’s universities, and current problems will be passed onto the next cohort of students wanting to start the next chapter in their lives. An industry-led and government-agreed long-term and targeted approach must be found to help alleviate the current problem.
In the face of rising rent prices, PBSA offers a targeted solution that benefits students and the larger community. It addresses the immediate housing needs of students and strategically contributes to freeing up much-needed housing stock. As we come to the end of winter exam season, the answer must be further investment into PBSA as a profitable and necessary solution to the current problems faced by the industry.
Written by: Kieran Foley, Account Executive