Lettings 'on track for solid recovery'

Published on Saturday 16 January 2010 14:09

SCOTLAND'S letting sector is shaping up for a solid recovery in 2010 as demand increases for rental properties, according to research by online portal Citylets.

Landlords saw the time-to-let (TTL) in Scotland, a key market indicator, come down significantly throughout 2009, a trend likely to push up rents.

The latest Citylets quarterly report, which covers the period from October to December 2009, showed the average TTL was 37 days. This was an improvement on the rest of 2009. TTL was 48 days in the first quarter, 45 days in the second and 42 days in the third.

The average monthly rental in Scotland was 630, which represents a small year-on-year fall of 2.5 per cent. This slight annual decline was less than the figure reported in the previous quarter (-3.5 per cent) and in line with Citylets' prediction that the market slide had bottomed out.

Dan Cookson, Citylets market analyst, said: "This shortening of average TTLs in recent months is indicative of a better balance between supply and demand in the rental market, which, if maintained, is likely to lead to upward pressure on rental values in subsequent quarters in 2010.

"That is a boost to landlords and property investors. Indeed, linked to the cheaper cost of mortgages and property, it could act as a trigger to spark life back into Scotland's buy-to-let market."

Citylets.co.uk was launched in 1999 and its quarterly report is the UK's only detailed and independent barometer of the rental market. It is based on more than 50,000 annual lettings from over 300 agents.

Thomas Ashdown, the entrepreneur behind Citylets Network, which includes partner brands such as s1homes and Primelocation, said the trend would be good news for landlords and letting agents, who have faced an unpredictable market for the past two years.

He said: "The continued tightening of TTL figures into the last quarter of 2009 suggesting a market recovery is fully consistent with the recorded volume of leads we have been delivering clients."

According to the report, affordability issues for first-time buyers in the housing market, due to increased deposit requirements, are one reason for the continued strong demand for one and two-bedroom rentals.