Scarcity of property
A SHORTAGE of properties to let has driven up the cost of renting in Scotland and further increases could be on the way, according to a report published yesterday.
The Royal Institution of Chartered Surveyors (RICS) revealed that 7 per cent more chartered surveyors in Scotland reported increased demand for rental property in the three months to the end of June rather than a fall. The rise in demand has coincided with a fall in the availability of letting properties, according to RICS, which said that nearly a third more surveyors in Scotland reported an increase in rental prices than reported a fall or no change.
It was the third successive quarter in which Scottish rental prices increased. In contrast, the same period last year saw 38 per cent more surveyors reporting rents falling, or not rising, as over-supply of rented accommodation pushed prices down.
And rents could continue rising, with 5 per cent more surveyors expecting them to increase in the third quarter than predicting a fall.
The shortage of properties on the rental market is due partly to the difficulty faced by would-be investors in securing buy-to-let mortgage finance, as lending cri-