CKD Galbraith Reflects On Rental Market With The Introduction Of The Tenancy Deposit Scheme
With the formal implementation of tenancy deposit schemes fast approaching, we welcome the new safeguards for tenants at a time when the letting market is booming.
The scheme, which came into effect on Monday 2 July, will benefit an increasing number of tenants, with all six of CKD Galbraith’s regional lettings offices throughout Scotland reporting that lettings are on the rise with new lets up 20% in the first quarter of 2012 on the same period of 2011.
Our latest lettings report highlighted higher than average rental value than the Scottish national average of £664 per calendar month (pcm) reported by Citylets. CKD Galbraith’s average rent is £709pcm.
Our research also showed that properties were being snapped up quicker – CKD Galbraith’s average ‘time to let’ was 37 days, a full week less than the average of 44 days reported by Citylets.
Shirley Kenyon, our lettings manager , said: “Our statistics reflect the national trend for the growing demand for privately rented homes.
"There is no doubt that the swell in popularity of rented accommodation is caused by the continuing difficulties that would-be homeowners are facing in financing their first purchase. However, more recently there has been an emergence of a new sector in the lettings market.
“We’ve found that the dynamics have shifted over the years. Our firm’s research has shown that the rental market is not just the choice of the young and old, the groups who traditionally tend to rent. We are now witnessing more families and full time workers renting – with a demand for larger properties, which also explains our rise in average rents.
“We’re finding that an increasing number of young couples who traditionally rented a 1-2 bedroom flat for a year or so when first moving in together, with a view to buying their own home, are now tending to choose to let larger properties - 2 bedroom houses with gardens – intending to settle for longer.
“Whilst rental prices remain high, finding a mortgage and deposit to buy is still a major struggle for the majority during the credit crunch. There are many advantages to letting properties, and it should not be seen as second best. Renting provides flexibility – at a time of uncertainty in the job market and with more work commitments relying on travel and relocation. It can be a sensible step. It reflects changing lifestyle demands.”
New Safeguards: Tenancy Deposit Scheme
As the number of people renting from private landlords continues to grow in Scotland, private letting agencies like CKD Galbraith have increasingly been put under the spotlight. A major change that is due to come into force on Monday will see Scottish landlords required to hand over their tenants deposit cash to an independent tenancy deposit scheme.
Shirley comments: “The growing importance of lettings has led to better safeguards. We think most will benefit from the change - landlords less likely to be embroiled in disputes, and tenants reassured that their deposit is safe.
“CKD Galbraith has made sufficient provision for the scheme and prepared tenants and landlords of the changes ahead. We have signed up with the SafeDeposits Scotland scheme and all of our tenants can rest assured that their deposits are held independently as a result of this legislation. With an eye to the future, more landlords are taking advantage of our full management service to lessen the administrative side of the introduction of the Scottish Tenancy Deposit Schemes.
“There will be some effect on letting firms in Scotland – those who have relied on tenants deposits for cash flow purposes will struggle to implement the new rules. However, this can only be seen as a good thing if it ensures the rights and finance of tenants are guaranteed at all times.”
CKD Galbraith, already a member of the Royal Institution of Chartered Surveyors (RICS) and Association of Residential Lettings Agents (ARLA), recently also became a SAFEagent and guarantees that tenants' and landlords' money is protected by a client money protection scheme.
To discuss letting a property with CKD Galbraith contact your nearest office situated throughout Scotland.