Renters face struggle to buy first home

The Covid-19 pandemic has changed the way we live – and for some that means where we live. Many people have found themselves stuck in rent and face many problems – short-term lets, sham lets, poor conditions and a government rent control scheme which has not been utilised four years on from its inception.

There are full-time workers who cannot save for a deposit amid the everincreasing cost of rent, and students who fear they will be priced out of the market in the future as they see house prices continue to rise.

James Barrowman is a 25-year-old PhD student who has lived in Dundee for eight years.

The part-time lecturer and barista is writing his PhD on the literature of the City of Discovery.

But despite wanting to spend the rest of his life in the shadow of the Law, James fears he will be priced out of the city he loves.

“For people like me who are renting and hoping to buy in a few years it is a really desperate situation,” explains James.

“It just feels like it’s going to escalate from here unless we tackle it. I’m very excited about the news surrounding the Eden Project and further development in the city, but I think it’s sort of inarguable that that will have a knock-on effect for rents and the growth of short-term lets.”

James does not think it is realistic that he will be buying a house in the next five to 10 years.

“It feels like an impossible task,” he said.

“I think there’s a lot of that from people my age – people think it’s just not going to happen.”

The PhD student believes that the situations witnessed in Glasgow and Edinburgh, where house and rent prices have skyrocketed in the last decade, should be seen as a “cautionary tale”.

James, who joined campaign group Living Rent during the pandemic, wants to see rent controls brought in and a limit to the number of Airbnb’s and holiday lets in the area. He said: “If the house prices continue to rise and reach Edinburgh levels then people like me are going to be priced out.”

Data from Citylets shows a steady increase in Dundee rent prices from 2007 to the present, indicating that accommodation costs are continuing to rise in the city.

Thomas Ashdown, managing director of Citylets, explained: “Rents are still relatively low in Dundee but there still is a very long, slow steady trend of upwards trajectory – it’s unmistakable.

“It’s something six or seven years ago you would not have considered, but on the current trajectory Dundee will catch up with Aberdeen in a few years – and that was just absolutely unthinkable seven years ago.”

These challenges for first-time house buyers are being felt across rural areas, with most house prices in Perth and Kinross going for above home report value.

James McKay, property seller at Aberdein Considine in Perth, said he had a lot of sympathy for buyers trying to come on to the market.

The branch manager said he had seen nothing like the current market in his whole career.

“Any house, from a two bed starter home for a firsttime buyer up to a large detached residence, is generally getting offers in at or above home report valuation.

“And that is unheard of in my 27 years that I’ve been in the market.”

James believes that it is people making life changes since the pandemic that is driving this unique time in the property market.

“At all levels of the market, from entry level first-time buyer houses right up to the large detached residences in Perthshire, Pitlochry, Crieff – there’s definitely a demand for a house that’s going to offer you a home and a lifestyle,” said James.

“The lifestyle part is the outdoor living, for spending time with family in the garden or access to country walks and other attractions.

“They can either work from home and live in a house north of Perth which is over an hour from the Central Belt and still be able to carry out their job or commute to the Central Belt once or twice a week and have a good work/life balance.”

While building more affordable houses seems like one obvious step in achieving that goal, there are other factors at play.

The Airbnb and holiday lets market has taken huge swathes of properties out of the reach of potential buyers and renters.

A study by Admiral shows that Scotland had £8.1 billion worth of property lying empty in 2020 for at least a sixmonth period. Around 3,500 properties had been deserted for more than 11 years.

With 19 homes in every 1,000 unoccupied, Scotland has the biggest problem within the UK. Of the 25 Scottish local authorities that took part in the survey; Angus and Perth and Kinross made the top 10.

Adrian Sangster, leasing director of Aberdein Considine, has called for proper action to be taken to rectify the issue.

“There’s about £8.1bn worth of homes lying vacant throughout Scotland which seems a bit daft at a time when there is the demand out there and these homes are lying empty,” said Adrian.

“I understand that most of them are privately owned, so whether it’s local authority or government, I think there needs to be a bit more drive or investigation into why that’s the case and an effort to make them available for accommodation again.”

One aspect of the housing market that hasn’t been affected the same way as houses is flats.

From Perth to Aberdeen and in Dundee as well, flat prices remain relatively low and in good stock.

James McKay, Aberdein Considine in Perth, said: “There is still an oversupply of flats on the market so there’s not been a better time to buy a flat.

“Even at entry level, which in Perthshire is between £50k -£110k, there are properties available for first time buyers.”

PROPERTY WOES: James fears he will be priced out of the city he loves.