Market Overview

Lettingweb data for September shows no sign of letting industry slow down

Rental prices and demand both up on recent years

(PRWEB UK) 19 October 2012

After one of the busiest summers of online flat hunting ever seen on Lettingweb, the industry would usually tend to see a slow down as the months move towards Autumn. Students get settled into accommodation, and the cooler temperature puts people off moving.

That hasn't happened so far this year, however, with rent and demand both rising: not only on 2011, but on August this year as well.

  •     Rents on 2 and 3 bed flats in Scotland have risen 23% and 7% respectively. That amounts to an increase of a staggering £141 on for 2 bed flats last year.
  •     There were also increases in rent across the board compared to this August, with 1 bed prices increasing by £40, 2 bed by £100 and 3 beds by £21.
  •     The time it takes for a flat to be rented out on Lettingweb has also tumbled on last year, dropping almost 50% from September 2011.

As rents continue to rise and demand doesn't show any signs of abating, these are interesting times in the letting industry. And it seems to show an increasingly sunny outlook for British landlords.

Part of the reason for the sudden increase in rents may be due to the recent decision, after a lengthy campaign from Shelter entitled ‘Reclaim Your Fees', to ban all tenant fees charged by Scottish letting agents.

Patrick Foot, Lettingweb's product manager, had this to say about the rent rises:

‘In a tough time for tenants in general, an increase in rents could be catastrophic. The fact that people looking for a flat in September will have to deal with this and an increase in demand makes a harsh picture for potential tenants in Scotland.

It's too early to fully tell what the cause of this is, but if it is a result of the banning of tenancy fees then it proves what we at Lettingweb have been saying all along – that removing premiums will lead to increased rents, and a worse time for tenants in general.

People looking for a 3 bed flat may have previously been charged £50 by an agent to cover costs, the rise in rents means that will now become £648 over a 12 month lease. Clearly, the tenants are not winning here.'

Landlords who are not aware of the ban on fees should consider finding a letting agent to avoid any legal trouble.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10030239.htm

 

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