Jan
29
Citylets Rental Report Q4 2009 - Encouraging Signs for 2010
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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/
Aug
4
There is little good news to report this quarter. Rents are down and falling faster than last quarter; properties are taking much longer to let than last year; and stock levels rose. The latest Citylets Report does at least show that the rate of stock growth has slowed but this will be minimal comfort to landlords in Scotland who own one and two bed flats where competition for tenants remains strong in most regions. Indeed double digit % declines in rents were recorded for some areas in Edinburgh with two bed flats in Aberdeen not far behind. Rents for larger flats to rent in Edinburgh have held steady buoyed by seasonal demand for student accommodation in Edinburgh which, unlike the supply of large flats, has increased over the years. As with elsewhere, it took longer to find tenants for rental property in Glasgow but, so far, the falls in rents have been quite small.
Mar
25
More than 300 movers & shakers in the property rental sector turned out at Scotland’s biggest annual landlord event yesterday organised by the Scottish Association of Landlords (SAL). As key sponsor, Citylets expects the event will go from strength to strength as private landlords take on increasing political significance in the current housing market.
MD, Thomas Ashdown commenting on the record breaking turn out said that the success coincided with an extremely positive Government review of private rented housing.”It’s telling that on the day of the event the Scottish Government has published its review of private rented housing and acknowledged that private landlords are playing an ever more important role in the housing market. “I believe what we are witnessing is a sea change in attitudes towards the private sector. There has often been a misconception that it’s about little more than wealth creation however it has a very serious role to play in Scottish housing.
Among the guest speakers at Edinburgh’s Dynamic Earth was Housing Minister Alex Neil, who earlier unveiled key findings of the most extensive study of the sector ever undertaken in Scotland. It found high levels of satisfaction among landlords and private tenants, while also recording a marked increase in demand for private lets among students, young professional and migrant workers. Alex Neil said: “The current economic downturn shows demand for private housing increasing at a significant rate. It is imperative we develop a modern and effective private rented sector.” He added: “The findings are encouraging, but we recognise there is still work to be done. Private landlords have the potential to play a greater role in providing accommodation for homeless households in particular.” Citylets staff who were on hand to meet delegates at the event and answer questions about the quarterly reports included Client Services Manager, Mark Crossey, Kasia Drak who provides customer support and Dr Colin Roberts of Edinburgh University.
Previous quarterly reports can be found at www.citylets.co.uk
Jan
23
Citylets Property Reports
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Over the last quarter of 2008 the banks continued to cover themselves, but not in glory, as huge losses limit their ability to lend and expected future losses necessitate the widening of margins. It is incredible that so many got it so wrong, so few are accountable, but perhaps Minksy helps us understand why “A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him.”Still, it’s hardly a resounding endorsement of all the checks and balances that are supposed to protect stakeholders.
In the Scottish residential lettings market the effects of ongoing turmoil in financial markets and economic slowdown have been a continuation of a trend first seen in Q3 2008 and the development of a new one. Tables Turned, the latest Citylets Report, shows a further rise in rental stock levels partly as a result of Citylets client growth but also as more reluctant landlords have entered the lettings market. Even so, the time-to-let averages were only slightly longer than in Q4 2007 although there was one major exception – one bed flats to rent in Glasgow, Aberdeen and Edinburgh all took significantly longer to let than they did last year. The slowdown in 1 bed flats is probably a consequence of lower economic activity in the cities but also, with ever gloomy headlines, more people are looking to save money by sharing, or remaining in shared, rental accommodation. With unemployment expected to rise in the coming months, dampening demand, it’s likely in the first half of this year properties of all sizes will take longer to let than previously. Read the full Citylets Report.
Oct
17
Citylets Property Reports
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A once in a century storm hit financial markets towards the end of the last quarter. Initially criticism rained down on short-sellers - we were half expecting to see a ‘short-sellers ate my hamster’ headline – but it served little other than to distract from the shortcomings of, among others, governance, regulation, rating agencies and prudential supervision. A twister touched down in September, felling some banks while others ‘too big to fail’ entered the Downing Street bunker. “Come in,” they said, “I’ll give you shelter from the storm” - oh, and £37 billion.
As property sales volumes continued to dwindle more people turned to the rental market notably ‘reluctant landlords’ - those looking to let property until the sales market stabilises. The latest report, The Tempest, shows that while tenant demand has remained strong, very unusually for the third quarter stocks of rental properties stayed high as the supply increased. This may be the first sign that trends seen over the last few years are about to change.
Activity was much higher in September than is normal (especially for two bed flats to rent in Edinburgh ) so, despite the increase in supply, the time-to-let averages were comparable to Q3 2007. Rents of one bed flats appreciated by more than inflation with, as ever, one bed flats in Aberdeen commanding the highest rent (averaging £578) and posting the strongest growth. However, with two bed flats in Aberdeen there are signs that the market may be cooling. Read more in the full report here.
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