Scottish Rental Market Slowing?

A new study suggests that the rental market in Scotland is slowing. The latest Citylets quarterly report showed that one bedroom flats in Scotland's major cities are taking up to nine days longer to be let between September and December 2008, than they were in the same period of 2007.

According to Citylets Managing Director Thomas Ashdown the drop is down to people deciding to share because of the economic downturn and unemployment fears, he said:

"This report suggests that, with the credit crunch still going strong, people are becoming fearful of their jobs and more protective of their money, which is why many are choosing to team up and rent larger homes with friends.

"By sharing the rent on a bigger property, they are paying less per month than they would have done on a one-bed flat. This means that they will have more disposable income, which they can use to save up for a deposit, pay off credit cards or as an emergency fund if the economy slumps further and their job is at risk."

The Citylets report also displayed the increase in rental properties coming onto the market, due to the new reluctant landlords, developers and private sellers who have been unable to sell their property and have been forced to rent them out. Ashdown said this is also playing its part in the increase in time it is taking to let properties:

"Increased choice for tenants has begun to impact on the length of time it takes to let a property. If this trend continues, established landlords could face longer void periods in the future than they have in recent years."