Trends in Scottish Residential Lettings
Trends in Scottish Residential Lettings
Citylets Report Quarter 3
Mixed reports from a broad range of commentators in the sales sector leaves the picture unclear as to the precise state of the market however most agree that there has been a general stabilization. This is reflected in rentals with agents reporting a slowdown in new 'reluctant landlords' and indeed a return to sales for a % of property from that genre of landlord. Other commentators suggest the sales market still has some way to fall with lending to first time buyers likely to remain restricted and expensive for the foreseeable.
Rents in Edinburgh have been hardest hit overall with 2 bed properties in particular falling further year on year, down 7.7%, attributable in part to a combination of pocketed oversupply and weakened demand in the corporate sector. 1 bed properties in Edinburgh remain depressed year on year at 4.6% down broadly the same as Q2.
Q3 is a traditionally busy period for the market and this year was no exception with Citylets recording its largest ever monthly visitor traffic in August. With many larger properties being let to students over the period, rents for 4 & 5 bed properties in Edinburgh & Glasgow bucked the overall trend recording modest gains once again proving robust in challenging market conditions.
The outlook for 2010 should be one of relative calm after the drama of the last two years assuming the sales market has steadied. The credit crunch in Scotland has resulted in a general growth of the rental market with more properties available. The balance of supply and demand has shifted dramatically back and forward in a short space of time but appears to have settled once again which should be reflected to rent values going forward.