Scottish Property News

Glasgow rents buck trend to remain stable

A report has found that despite a widespread drop across the country the rate of decline has been less steep in Scotland's largest city.

The average rent from April to June in Glasgow was £563, a drop of less than £20 for the same period in 2008, while in Edinburgh average rents dropped by £33 to £716. The report by lettings firm Citylets shows rents across the country have dropped by 3.3% since last year.

However, while high stock levels have forced landlords across Scotland to lower prices to secure leases, Glasgow has been least affected by the slump.

Stephen McKean, area manager for Countrywide in Scotland, said: "Rents in Glasgow are still strong.

"Rental values have only dropped by about 4 to 5% at the most. In terms of a £500 or £600 monthly letting fee, this is only a decrease of about £20 to £30."

However, the report shows that flats in Glasgow are taking longer to rent than in previous quarters.

A total of 60% of flats were still empty a month after advertising in the second quarter of the year.

Property experts say the high volume of rental property is likely to continue to depress rents and maintain the time taken to let. Thomas Ashdown of Citylets said: "Rather than falling rents, the longer time taken to let property is the biggest concern for landlords now.

"Expectations need to be adjusted to market conditions and landlords may need more patience and marketing experience to find their next tenant.

"Although down from the record levels of 2008, demand remains fairly healthy overall with some sectors such as larger student properties apparently fully recession proof, but we expect this to weaken towards the end of the year as the number of people losing their jobs bites."