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Property taking longer to rent out in Scotland as people choose to share to spread costs

Tenants are choosing to share and moving in with friends or workmates to spread the cost suggests the report from Citylets.

In the last quarter of 2008 single-bedroom properties across Scotland took longer to let than last year. Flats in Edinburgh, Glasgow and Aberdeen took between five and nine days longer to rent than during the same period in 2007.

Thomas Ashdown, Managing Director of Citylets said it reveals a trend towards sharing that is probably due to the economic downturn and unemployment fears among tenants.

'This report suggests that, with the credit crunch still going strong, people are becoming fearful of their jobs and more protective of their money which is why many are choosing to team up and rent larger homes with friends,' he said.

'By sharing the rent on a bigger property, they are paying less per month than they would have done on a one-bed flat. This means that they will have more disposable income, which they can use to save up for a deposit, pay off credit cards or as an emergency fund if the economy slumps further and their job is at risk,' he added.

The report has also recorded a growth in new properties coming onto the rental market. 'There's been a big increase in recent months from reluctant landlords, that is people who have moved house but have been unable or unwilling to sell their original properties at current offer prices and decided to rent them out instead. A number of developers have also found themselves in this boat,' explained Ashdown.

The report also shows that average rents in Scotland rose by 2.1% compared with October-December 2007, which is the slowest rate of growth for a year. The average time-to-let rose to 37 days, up two days from the same period in 2007, with 48% of all properties letting within a month.

'In the medium term, a recovery of the sales market looks unlikely and we suspect that rental stocks may rise further with supply outpacing demand particularly if unemployment continues to rise,' Ashdown added.

'Increased choice for tenants has begun to impact on the length of time it takes to let a property. If this trend continues, established landlords could face longer void periods in the future than they have in recent years,' he warned.

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