Inverness is facing a severe shortage of rental properties, causing a major headache for locals looking to find a home. The property website Rightmove has revealed a startling figure: only seven rental properties are currently available in the entire city. This scarcity has forced one local letting agency to suspend viewings for a property within just an hour of its listing due to an overwhelming flood of applications.

The Competitive Crunch

Despite the rapid closure of property viewings, the number of applications per property has actually decreased from last year’s 15-20 applicants to about eight. Yet, the drop does not signify an easier time for renters but rather reflects the dwindling number of available rentals. Sarah-Anne Gow, the Residential Lettings Manager at Macleod and MacCallum, highlights the fierce competition in the rental market, primarily due to a significant drop in available rentals. According to the Scottish Association of Landlords, the Scottish rental market has lost approximately 22,000 rental properties in the past year alone.

Pricing and Availability

The impact on prices due to this shortage is unmistakable. The average rental price for a one-bedroom property in Inverness stands at £560, while a two-bedroom flat averages at £750 per month. These prices are becoming increasingly difficult for many to afford given the limited availability.

Government Regulations and Market Shifts

The shortage of long-term rental properties is exacerbated by landlords leaving the rental market, influenced partly by unfavourable regulations imposed by the Scottish Government. Another significant factor is the shift towards holiday accommodations like Airbnb. The Inverness Courier reports a staggering 200% increase in Airbnb listings over the past five years, which often results in long-term tenants being displaced.

Calls for Further Regulation

In response to these market shifts, the Scottish Government has introduced Short Term Rent License regulations requiring hosts to obtain a license for short-term rentals. However, many are calling for more stringent controls, such as caps on the number of short-term lets to preserve the availability of long-term residential housing.

The Local Perspective

Karine Macrae Simpson, director of Tailormade Moves, echoes the sentiment of a competitive rental market, noting that despite opening viewings, many potential tenants hedge their bets by applying for multiple properties, contributing to the frenzy. Simpson also mentions that some landlords are opting to sell off properties rather than rent them, further exacerbating the shortage.