I was interested to read a report from LSL Property Services advising that the cost of renting a home in England and Wales hit another new high in October. It indicated that typical rent stood at £744 a month in October – up 0.4% on September. The charity Shelter commented on the report advising that this is yet more proof that life is becoming more difficult for renters and the increase in cost is piling on the pressure for hard pressed families.
My understanding is that the Scottish market will report similar trends mainly caused by first time buyers being unable to get on the housing market. Whilst I am noticing an increase in activity from property investors I do feel that demand for rental properties is outstripping supply. This is further evidence that both UK and Scottish Governments need to come up with a coherent strategy to assist first time buyers’ step on the property ladder. This will take some of the heat out of the rental market, stabilise the housing market increasing confidence with both banks and large developers. A policy to help the first time buyer would also go a long way to stabilising the economic conditions.
Lindsay Darroch Partner and Head of Property