Scottish rents on the slide

People renting property in Scotland are benefitting most from the beleaguered housing market, with a wide choice of properties available and rents continuing to fall across the country, according to online letting portal Citylets.

The latest Citylets quarterly rental report, which covers the period April to June 2009, shows that average rents declined for the second consecutive quarter and are now 3.3% lower than the same period in 2008.

Although high stock levels have forced landlords to lower prices to secure leases, properties are still proving slower to let than in previous years. Thanks to cheaper mortgages, however, many property owners are seeing their overall yields increase.

The rental report shows that the fall in rents has been widespread across Scotland over the last quarter, but in certain sectors - such as larger student flats - prices have held up well. The high availability of rental accommodation has also seen significant increases in time-to-lets with properties taking on average 14 days longer to let than a year ago.

Thomas Ashdown, spokesman for the Citylets Network, said that while rental levels are falling, which will be pleasing to tenants, it is not all bad news for landlords.

He said: “Although the continued decline may be of concern, the fact that rents have fallen by only 3.3% year-on-year during the sharpest recession in living memory and with other business sectors experiencing catastrophic collapses, I’d say this is by no means a disaster for the vast majority of landlords.

“That said, the full impact of fast-rising unemployment may yet to be felt, but there are positives to be taken out of this report for both landlords and tenants.”