Credit crunch leads to increased rents

Posted: 07 Apr 2008 11:01:59 GMT

Rents in Scotland are on the rise and it is largely down to the global credit crunch.

Rents in Scotland are on the rise and it is largely down to the global credit crunch.

That is according to Rettie & Co, which said that tighter mortgage lending criteria are forcing many potential new buyers into the rental market.

This is good news for landlords and has led to average rents rising as demand grows.

"Generally speaking we have already seen a firming up of rental rates in the market, with good take up of any good quality property on offer," said Diarmid Mackenzie Smith, lettings manager at the firm.

"With the effects of the so-called 'credit crunch', first-time buyers will now come back into the rental sector which will explain the increase in rental demand and signs of rental increases that have recently been experienced," he added.

Paragon recently revealed that average rents in the UK increased by 2.4 per cent between January and February.

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