Rents Decline Across Scotland

EDINBURGH, Scotland - Citylets, Scotland’s leading online letting portal, latest research shows that the cost of private rental accommodation is falling throughout Scotland.

Levels of rental stock are soaring as home movers are forced to let their unsold properties. This is causing rents to drop, despite high demand, and increasing the likelihood of void periods for landlords.

The latest Citylets quarterly report, covering January to March 2009, shows that average rents in Scotland have decreased by 1.1% to GBP638. Edinburgh saw the most widespread change, with 1 and 2 bed flats down 1.1% and 1.9% respectively. These are the first annual declines in the capital since Citylets started recording data in 2003.

Edinburgh was 2.6% down on last quarter with an average rent of GBP732, Glasgow was down 0.7% to GBP560, and Aberdeen remained virtually unchanged at GBP860.

1 and 2 bed flats - the largest sector of the rental market - saw the biggest rent falls, while larger properties remained steady, perhaps indicating a greater interest in flat sharing and an early start to the seasonal student market.

With a greater choice of rental properties available, time-to-let averages have increased dramatically.

Managing Director of Citylets Thomas Ashdown commented: “I think rents, whilst down slightly pretty much across the board, have done well given the abundance of supply we have seen come onto the market from would-be sellers in some areas.

“However, landlords need to appreciate that one and two bed properties in Edinburgh are taking around 50% longer to rent, and 33% longer in Glasgow, than they were over the same period last year.

“Void periods are much more likely, and patience in finding the next tenant may be required. If their agent is using Citylets Network, which includes other major brands such as s1homes, as part of their marketing mix, that’s a major box ticked - we have a combined annual audience of millions.”

“It will be interesting to observe major conflicting forces affecting demand this year, availability of mortgage finance and rising unemployment. Whilst the sales market remains depressed, supply in Edinburgh in particular seems set to continue to rise, perhaps peaking towards the end of the year.

“As a result, I would expect greater choice for tenants to continue and hence downward pressure on rents.”

About Citylets:

Launched in 1999 Citylets (www.citylets.co.uk) is Scotland’s most successful lettings portal, facilitating over 40,000 lets annually through over 250 agents. Its quarterly reports are the only detailed and independent barometer of Scotland’s rental market, and are widely respected throughout the industry.

Source: Citylets

Contact: Thomas Ashdown, Citylets, 21 Lansdowne Cresent, Edinburgh, Eh12 5EH. +44(0)131-467-4864.