A new Citylets report on Trends in Scottish Residential Letting shows average rents still dropping.
Online PR News – 31-July-2009 – – A property letting rental report covering the second quarter of 2009 depicts a market characterised by lower rents, an over-supply of rental accommodation and longer times-to-let.
Published by online letting portal Citylets, the report on Trends in Scottish Residential Letting reveals that average Scottish rents have dropped for the second consecutive quarter, with rents in Q2 2009 3.3% lower than in Q2 2008.
According to the Citylets report, Edinburgh has experienced the most marked changes in rental activity. Worst hit is Leith, where rents for one and two-bed flats dropped 10% to average £470 and £603 respectively. Average rents in the Scottish capital as a whole also declined compared with Q1 of 2009.
That said, compared to nationwide figures, the rental report showed Edinburgh prices as being relatively strong, mainly thanks to the flourishing student flat sector where rents bucked the national trend by remaining stable or even rising fractionally.
The nationwide slide in rent levels - to a national average of £634 - is mainly due to current high stock levels which are the result of property owners opting to let property which has not sold in the depressed market.
Another side-effect of high stock levels is the significant increase in times-to-let, with some flats and houses in Edinburgh taking twice as long to let as a year ago. With plenty of properties to choose from, tenants are in no rush to make decisions.
A recent item in the Scotsman newspaper revealed that local property agents are predicting a potential over-supply of flats for rent during the Edinburgh Festival, traditionally the busiest time of the year for Edinburgh letting companies.
Edinburgh is not alone. The Citylets rental report revealed that nationwide properties are taking on average 14 days longer to let than a year ago.