Edinburgh’s housing infrastructure needs a massive upgrade

The recent report by Rightmove that showed Edinburgh was the most popular UK destination for Americans shouldn’t have surprised anyone. Over the last two decades the number of US citizens living in Edinburgh has more than doubled.

And it isn’t just Americans. Almost one quarter (23.5 per cent) of Edinburgh residents were born outside the UK with Poles, Indians and mainland Chinese the top three and Americans the fourth largest group. This means that there are 120,978 people living in Edinburgh who were born elsewhere, which is an increase of 83,558 in 20 years.

The Rightmove report found that 28 per cent of enquiries from America were for Scotland compared to 26 per cent for London, with Edinburgh the most popular city in the UK.

The data included both people looking to relocate but also to invest in a second home and estimated that one third were seeking a permanent home. The quality of the schools, family connections, or having visited the city for education, the festivals, or leisure means many may already know Edinburgh well and like the lifestyle it offers.

This shouldn’t surprise anyone as Scotland’s capital has always attracted people from all over Scotland, the rest of the UK, and the world. It’s combination of good job opportunities, outstanding culture, and lifestyle opportunities have made it a beacon for many enterprising and ambitious people over the last two decades.

Just last week it was named the third best city in the world for culture with the judges praising the annual festivals but also the free museums and galleries and its rich literary traditions which continue to this day with both JK Rowling and Ian Rankin owning homes in the city.

It also has one of the fastest growing airports in the UK and transatlantic services have increased substantially over the last decade.

But is this a good or a bad thing? Attracting educated, highly skilled individuals to the capital has been key to its economic growth over the last 20 years. Edinburgh’s population grew by 8.4 per cent over the decade to 2023 while Scotland’s population only increased by 3.2 per cent.

Edinburgh has the highest percentage of working residents of any major city in the UK including London, has the highest median hourly pay, and the greatest number of highly skilled employees.

The result is that demand for homes to buy has increased enormously in the capital and prices have risen substantially as a result. Those coming to live in Edinburgh who aren’t buying a property seek a home in the private rented sector (PRS).

The outcome is that there are enormous demands both for new homes to buy and to rent. So, while we should welcome this influx of Americans and people from other countries, we must understand that the city’s infrastructure must grow to meet the needs of the capital in the next 20 years. More new homes are required, greater encouragement for investment in the PRS, and recognition that it is only by developing Edinburgh sensibly and at pace that the current levels of economic growth will continue. It should also be recognised that a successful and desirable capital is good for the whole of Scotland as the benefits accrued from attracting people and investment ripple out across the country.