Scottish Housing Crisis Growing

There's a growing supply crisis in Scotland's private rented sector, according to a new report.

Lettingstats, part of the Lettingweb advertising portal for rented housing, says its analysis of property advertised by letting agents this summer shows a year on year increase of 8.6% in advertised rents for 2 bed accommodation.

Providing uniquely detailed quarterly analysis, Lettingstats is the leading source of market information on the private rented sector in Scotland. The well respected report and its associated on-line resources are used widely within the industry by policymakers, government, tenants as well as the 350 plus Scottish letting agents that are members of Lettingweb. Information for the summer period between 1st June and 31st August, indicate a rise in asking rents in many key urban markets. 

Lettingstats Head of Research, Dan Cookson has identified that the greatest risk to sustainability in the sector is insufficient supply to meet growing demand. Speaking on the release of the report, he said:

"The private rented sector has grown significantly in recent years, responding to increasing demand for quality and convenient property to rent. We need to ensure that supply continues to increase to meet further growth in demand.

"Whilst these figures do cover a period including the Commonwealth Games and the busy summer lettings period, this looks like a significant movement in rent levels. Whilst increasing numbers of higher end properties are coming to the rental market, and may be influencing the figures, it's clear that for many prospective tenants there is simply not enough rented property on the market."

Lettingweb's lobbying arm, Letscotland will be taking the findings of the summer report to politicians and government, looking to secure a new focus on addressing the supply crisis.

Letscotland's Chairman, Malcolm Warrack confirmed:

"Working together, our industry needs to speak with one voice, and with the independence referendum now behind us, housing needs to be at the top of the political agenda.

"Addressing this increasing demand for private rented housing requires urgent action -  we must make it easier and more attractive for new investors to enter the market and provide the quality homes of the future."