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industry news
Scottish rents rise whilst Aberdeen’s slip over oil
The latest Citylets report
for the Scottish PRS to Q1
2015 confirms that the average rent
in Scotland has continued to rise with
strong gains in its two main cities of
Edinburgh and Glasgow. However,
segments of the Aberdeen market
have begun to fall, led lower by the
softening of the oil price and its
knock-on effect to the local economy.
Rents in Scotland on the whole rose
by 7.4% over the year to March 31st
to stand at an average high of £751
per month. National rents have risen
16.4% since 2008, around 2.5% per
year, approximately the same as longterm inflation.
Properties of all size (1–4 beds) saw
rent increases over the year with 4 beds
rising the most at 9.7%, reflecting the
increased demand for family homes to
rent across the country.
Edinburgh and Glasgow recorded
similar annual growth of 7.7% and 8.1%
respectively and Aberdeen also grew
but at 2.2%, representing a significant
slowdown on annual inflation. Indeed,
the Aberdeen market no longer seems
to be on a homogenous drive upwards
with clear demarcation between small
properties, which rose in value over the
year, and large properties which fell.
Whilst Aberdeen rents are up 2.2%
on the year at £1,089 per month, this
represents both a fall from Q4 2014 and
a considerable slowdown in annual
inflation between recent quarters, down
from 8% annual growth as at Q4 2014.
Citylets founder, Thomas Ashdown,
also expressed concern at the current
trajectory of the Scottish PRS in its major
cities upon the release of the latest
report in light of recent affirmations on
likely legislative change.
Ashdown, who founded Citylets
back in 1999, singled out the Scottish
Government’s apparent commitment to
end ‘no fault’ grounds for repossession.
“We fully understand and support the
intent to make renting in the PRS a
better place. However, as I understand it,
measures seem set to be introduced that
could further limit supply at a time when
there is a chronic shortage in major cities.
The plan to have special measures to deal
with rent rises in these areas seems like an
overt case of addressing the symptoms
whilst exacerbating the root cause.”
New lender adds to distribution panel
Fleet Mortgages, the new buy-to-let
and specialist lender, has added
Intrinsic, one of the UK’s leading
networks for financial advisers, to its
distribution panel.
Advisers who are part of Intrinsic,
including its appointed representative
firms and its Positive Solutions Partners,
will now be able to offer their clients
access to the Fleet Mortgages’ buy-tolet range which offers mainstream, HMO
and limited company products.
Intrinsic becomes the latest distributor
to join Fleet Mortgages’ panel with the
lender offering a proposition specifically
focused on experienced landlords and
property investors.
Intrinsic is part of Old Mutual Wealth,
having been acquired in July 2014, and is
the financial services network of choice
for over 3,000 financial advisers.
Fleet Mortgages’ panel is now
comprised of 11 firms with more to
follow over the course of the next
8 Landlord & Buy-to-Let Issue 58 • April 2015
quarter, according to the company.
Bob Young, Chief Executive Officer of
Fleet Mortgages, commented: “With the
continued expansion of our distribution
panel, particularly with large operators
like Intrinsic, we are moving towards
all intermediaries having access to the
Fleet Mortgages’ product range.
“Intrinsic come with a quality pedigree
and we are looking forward to dealing
with its members and their buy-to-let
clients. The spring is traditionally a
strong period for the buy-to-let market
and there is nothing to suggest that
2015 will be any different.
“The demand for buying and
refinancing investment property is clearly
there from landlords and investors,
and our lending run-rate has certainly
outperformed our initial expectations.
With more distributors to follow in the
coming weeks, we are looking forward
to expanding our presence amongst the
intermediary community.”
Emma Hollingworth, Mortgage Sales
Director at Intrinsic Network, said: “I’m
extremely pleased that we will be working
with Fleet Mortgages. Intrinsic is committed
to providing our advisers with access to the
leading lenders and products from within
the industry and this agreement with Fleet
Mortgages means they will now be able
to benefit from a great range of buy-to-let
products and provide their clients with
even more choice. We believe the buy-tolet market will grow in 2015 and it is great
that new entrants such as Fleet Mortgages
are continuing to innovate in this sector.”