Rents fall as owners fail to sell property

FRESH evidence of the impact of the economic downturn on Edinburgh emerged yesterday as two surveys revealed a slump in the rental property market.

Two firms reported that a glut of flats being put up for let by owners unable to sell them has led to the average rental price declining for the first time, compared with the previous year.

Citylets said the average price of a two-bedroom flat fell by almost 2 per cent, to 664.

Braemore Property Management – which has a portfolio of more than 850 properties across the city – revealed the average rent level in the capital had slumped by more than 50 in recent months.

Citylets' latest quarterly report states: "The rise in stocks over the quarter is almost wholly attributable to Edinburgh, where supply outpaced demand.

Financial sector job losses and general caution contributed to a weakened demand in the corporate sector, while property continues to flow into the rental sector from the sales market.