Jan
29
Citylets Rental Report Q4 2009 – Encouraging Signs for 2010
Filed Under Citylets Rental Reports, Did you Know...?, Market News, Renting news, Scottish Property News by DanCookson | Leave a Comment
The latest Citylets Quarterly Report for Q4 2009 shows that Scotland’s private letting sector is shaping up well for 2010 as demand increases for rental properties.
Scottish Landlords have seen the time to let (TTL) – a key market indicator – come down significantly throughout 2009 which if it continues will lead to a rise in rents. The final quarter of 2009 saw average residential rents in Scotland soften slightly to £630 representing a modest 2.5% fall compared to Q4 in the previous year. The latest quarter is just £10 down on the Q3 2009 figures but this masks recent slight upturns in the Edinburgh and Aberdeen markets.
However, the TTL has come down dramatically in certain sectors of the market. Edinburgh for example saw 1 bed properties take one week less to rent in Q4 than in Q3 (35 days to 28 days). The same reduction in TTL was seen across all Edinburgh rental property (41 days to 34 days). Significant improvements in TTL were also seen in Glasgow which saw 1 bed properties taking 8 less days to let (40 days to 32 days) and 2 bed properties 4 less days (39 days to 35 days).
Overall these indicators suggest the private rental market has adapted well to the downward shift in the housing sales market that was seen in late 2008 early 2009 and will continue to provide good returns to landlords in 2010. The likelihood is that yields on residential rental property are going to improve and this is something we will endeavour to explore in more detail in future analysis.
You can download the full market report here: http://www.citylets.co.uk/reports/
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