Rental trends in the private rented sector

from
Citylets is the UK's certified No.1 Residential Lettings Site***
•  Audience reach of over 4 million visitors per year*
•  Over 500 agents**
•  Advertising >65,000 properties per year**
•  Scotland’s leading residential lettings site***
*Google Analytics 2013 **Citylets ***
A selection of our clients
Citylets is Growing
•  Over 4 million visitors per year*
•  Visitor traffic over 4x 2007
•  Dedicated to residential lettings
•  Annual visitor traffic increased by
3 million between 2007-2013
Audience (Index Q1 2007=100)
*Google Analytics 2013
Citylets Quarterly Report
•  Citylets produce quarterly reports
on the Scottish lettings market
•  Widely acknowledged as the
most authoritative, detailed
barometer of the market
•  Expert analysis built up over 7
years of publication
•  Regularly quoted in Press
PRS stock has doubled from 2001 to 2011
5.8%
11.1%
Comparing Rented Sectors 2011 - PRS v LA v HA
Rental Stock Annual Rental Receipts (11.1%) 263,000
(13.2%) 313,000
(11.1%) 264,000
0
50
100
150
200
250
£1.82 bn 100,000 £0.91 bn 24,381 £0.88 bn 300
350
Stock (000s)
Private 0
Annual Volume
of New Lettings 1 Rental Receipts (£bn) 0.5
24,981 1.0
Local Authority 1.5
2.0
0
20
Housing Association 100,000 40
60
Lets (000s)
80
100
National rents edging gently upwards between 2008-2013
Rents rise 5.1% over 6 years, £645-£678
Average National Rents quarterly 08-13
.....with some notable exceptions!
Aberdeen 16.2% rise
National 5.1% rise
Average National & Aberdeen Rents quarterly 08-13
Time To Let is falling 08-13
National 33 days
Aberdeen 14 days
Average National & Aberdeen TTLs quarterly 08-13
National rents rising well below inflation 04-13
CPI up 30%
National rents up 7%
Rents rising since Q3 2012 in line with inflation
National rents up 4.17%
CPI up 3.4%
Vast majority of tenancy terminations are at the behest of tenants
85% of Short Assured Tenancies are brought to
an end by tenants of their own volition*
* Source: George St Research, 1003 tenants in PRS 2011
What was your main reason for moving to your current rental property?
Selected Households
Alone
Lease expired at old property and was not being renewed Other personal reason (e.g. separation or falling out with friends) To move in with partner / spouse Felt like a change of rental property Moving out of student halls of residence Sold home but prefer to rent Sold home and not bought another yet Moved out of parental home Started university/college Relocation due to work or some other reason
11%
23% 1% 10% 4% 5% 4% 4% 2% 29%
Partners
no kids
13% 3% 22% 9% 2% 3% 3% 2% 2% 28%
Partners
with kids
12% 6% 8% 7% 1% 6% 6% 3% 1% 28%
Friends
21% 7% - 10% 28% 1% - 4% 5% 12%
All
13% 12% 10% 9% 6% 4% 3% 3% 2% 25%
How stressful did you find the move to your new property?
Selected Households
Alone
Quite stressful Not very stressful Not at all stressful Very stressful
32% 41% 16% 8%
Partners
no kids
40% 38% 13% 7%
Partners
with kids
Friends
All
34% 37% 15% 40% 43% 12% 36% 40% 14% 12%
4%
9%
Why did you find the move to your new property stressful?
Selected Households
Alone
Difficulty finding the right kind of rental property Difficulty getting help with removals Other financial worries Difficulty finding deposit Rental property not fully ready Other administrative complications Not happy with removals company Complications with lease paperwork No reason in particular Need to move in a quick timescale
25% 21% 21% 10% 10% 7% 8% 6% 5% 58%
Partners
no kids
34% 19% 22% 14% 7% 10% 6% 5% 7% 49%
Partners
with kids
30% 22% 15% 11%
13% 4% 2% 4% 6% 52%
Friends
43% 32% 23% 13% 20% 8% 2% 10% 5% 43%
All
32% 22% 22% 14% 11%
8% 6% 6% 6% 50%
Scottish tenancies are increasing in length
600
500
Days
400
300
200
100
0
2007
2008
2009
2010
2011
2012
2013
On average tenancies have lengthened by 79% between 07-13
Sector Palliatives?
•  longer tenancies for families only
•  longer notice period for families
•  ‘family friendly’ letting agencies voluntary longer leases & notice period offered The data does not support the requirement for obvious wholesale reform
Citylets profiles residential property markets with Optilet Pro
•  New analysis tool for the Scottish rental market
•  Draws on Citylets data
• Quick and easy to use and generate & export chart info
Rental values & volumes by postcode or area
Eg 2 bed flats in post district EH3
Highly granular analysis available
Eg 2 bed flats in EH3 5 postcode sector
Eg 2 bed flats in Leith
Mid Market Rent Analysis
Eg 2 bed flats Leith @ 50% full market rate
Quartile Rents Analysis
Eg 2 bed flats Leith
Gross rental yield available to Developers & Investors
Gross Rental Yield info for flats
& houses available at the
postcode district level
Quarterly ROS data overlaid
with quarterly Citylets data
Improvements scheduled eg
yield info at postcode sector
level and discerned by
bedroom number and other
attributes…
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