Housing crisis: Tenants in Edinburgh forking out nearly half of salary on rent

Rents are likely to be pushed up further as a shortage of properties sees tenants chasing a limited number of homes.

Tenants in Edinburgh are spending forty three per cent of their income on rent, while facing mounting financial strain from rising energy and household bills.

It follows warnings from surveyors of a ‘frenzied’ market with rents likely to be pushed up further as tenants scramble for a limited number of homes.

Families and one local MSP told the Evening News people are just ‘giving up’ trying to get a home, due to the shortage of properties and sky high rent costs.

Edinburgh tenants paying out nearly half salary on rent

Experts said ‘there’s no end in sight’ predicting demand for properties will continue to outstrip supply with many landlords deciding to sell whenever a tenant left, due to tax and regulations.

New data shows Edinburgh came third highest in the UK for how much rent people pay as a percentage of their salary, with renters in the Capital paying 12 per cent more than those in Glasgow.

It was only topped by Cambridge at 51 per cent and Bristol was second highest at 48 percent.

Figures from property management company Add Living show the average annual cost for renting in Edinburgh is £13,596 while the average salary is £31,488.

The study has also revealed areas of the country where rent has increased most year-on-year with average rents in Edinburgh going up by fourteen per cent from £990 in 2022 to £1,133 this year.

Rental demand is currently 51 per cent higher than average across the country.

One mum from Edinburgh told the Evening News:

"It’s so frustrating. I’m looking for a three bedroom home for my family and need to try and stay in the same school catchment area. There’s nothing out there. I applied to view a property and I didn’t get past the basic form to view it. It includes a question of whether my annual income is 30 times the monthly rent. I just need a reasonable, affordable rent. As soon as they lift the ban on evictions they will literally have thousands of people facing homelessness that will need social housing as the private rental market is not fit for purpose.”

Lothians MSP Miles Briggs issued a fresh call for an urgent, long-term housing plan for Edinburgh. He said: “People are getting so frustrated trying to get a rented home they are just giving up at the bidding process. And I hear from many working in the public sector who are moving out of Edinburgh because it’s too expensive to rent and live here. We’ve got the lowest number of private rentals coming forward recently that we’ve seen in many years. Many landlords withdraw their properties or just sit on them. There were proposals on the table to help create a fairer market value rental scheme but they have all been killed off since the introduction of rent freeze.

"Now we are being told there will be a rent controls policy and that has spooked the market. I’m deeply concerned about the situation many in Edinburgh are facing. Now more than ever we need a long term housing plan with specific solutions for the Capital, across private rental landlords, council and the social rented sector.”