Citylets Rental Report Q1 2008 Summary

Lease is more

The increase in visitors to citylets.co.uk at the tail end of last year and in the first few weeks of January was maintained throughout the first quarter of the 2008. After adjusting for Citylets’ growth, more people were looking for property to rent than in Q1 2007 and they weren’t just window shopping as more properties were let in the first quarter than is usual.

Of course, the rise in demand could be due to a number of factors but does seem most likely attributable to credit crisis related factors. Lenders have become more choosy who they lend to, at what rate they lend at and how much they will lend against the value of the property. Combine reduced accessibility to, and increased expense of, mortgage finance with an uncertain outlook for house prices and (other factors being equal) it’s a fair assumption that first time and/or would- be buyers are behind the increased demand for rental property. Like for like and on a simple basis, monthly mortgage outlay vs monthly rent, renting does look good value.

Flats to rent in Edinburgh, both one and two bedroom, were in demand both posting higher year-on-year rental growth than seen for some time. While the same is true for 1 bed flats in Glasgow those looking for a two bed flat to rent seemed to have the luxury of a little more choice keeping rents at a similar level to last year.

As we enter into the traditionally busy letting season it will be interesting to see whether tenant demand is maintained and the trend of rising rents continues.

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