Presentation by Dan Cookson, Market Analyst at Citylets, given at National Landlord Day. Summarises state of private rental sector in Scotland with latest trends in rent levels and demand.
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Citylets Presentation at National Landlord Day
1.
2. Today:
• Brief summary of independent research Citylets
commissioned on PRS
• Key Findings from our Quarterly Reports
• Brief summary of Optilet our Web based research
and analysis tool
•A review of Citylets growth
3. Independent Research commissioned by Citylets in 2011
(George Street Research Base 1003 PRS tenants in Scotland)
How well has your current rental property been managed by your
letting agent / landlord?
79% quite well or very well (Agent managed)
86% quite well or very well (Landlord managed)
How fairly do you feel you have been treated as a tenant during
your tenure there?
88% quite fairly or very fairly
These figures compare very favourably with equivalent surveys of
social housing tenants.
4. Size of Private and Social Rented Sectors
PRS v Council (LA) v HAs
PRS = HA = LA PRS = HA + LA PRS > 2 x (HA + LA)
5. Market keeps management costs down
• Based on management fee of 10% of rent - Letting
Agents are charging on average £806 per annum per
property
• Housing Associations management fees are on
average £1,024 per annum per property (and HA’s
have less than a quarter of PRS new lettings volume
to deal with)
Source: The Scottish Housing Regulator Registered Social Landlord Annual
Performance and Statistical Return 2010-11 and the Accounts
Consolidation System 2011
6. Citylets Quarterly Report
• Bumper Issue 23 is just out
• Derived entirely from data entered by agents and
landlords
• Empirical not sentiment based
• Continually evolving (e.g. Volume index)
• Expanding geographical coverage (e.g. Fife)
• Recognised as the definitive source of info. on the
PRS and regularly covered in Press
11. Trends in House Prices and Volumes
Average Price for flats fell 4.3% in Q3 2012
while overall average house price fell 2.3%
(source: Registers of Scotland)
22. OptiLet gives you the tools to be the
expert on the market
• Optilet designed to assist landlords and agents
set the right rent using the most comprehensive
analysis of the most recent market data.
• Online reporting engine provides similar analysis
to our report but at local level.
• You are the expert
• As of today can be found in the client admin
area for agents or landlords
• Come for a live demo at the Citylets stand
27. Growth in site traffic
•Visitor traffic now double 2009
figures & treble 2007 figures
(source: Google Analytics)
•Growth is accelerating
•Over 3 million visitors per year
(source: Google Analytics, Nov 11-Oct 12)
28. Growth and Brand Development
According to Global competitive
intelligence agency, Experian
Hitwise, we are officially the No.1
dedicated residential lettings site
operating in the UK by visitor
numbers
29. Growth and Brand Development
•STV reaches 93% of the
Scottish adult population
•Around 1000 TV adverts
aired by Citylets in 2012
30. Share of visitors to Scottish lettings sites
Citylets: Market leader in Scotland
44%
36%
37%
36%
29%
19%
31. •‘Citylets’ is the No 1 search phrase
•‘Citylets’ used more often than any generic phrase such as ‘flats
to rent in Edinburgh’
33. 2012 has been a very ‘exciting’ year for
Citylets and the sector.
We look forward to helping you make 2013
even more successful.
Thank you.
Editor's Notes
PRS has doubled in scale over the last decade and is now comparable with both Housing Association and Council Sectors
PRS is highly competitive which is why rents and management fees have been increasing at less than the rate of inflation. Useful to compare costs with social sector.
I’m afraid to say our statistics are not quite as dramatic as the headlines would have you believe!
And so to the latest report. Average mix adjusted rents reached a new high for Scotland of £672 in the third quarter of 2012, though this represented an increase of just 1.0% on the same period in 2011
The 3 rd quarter is invariably the busiest of the year and volumes of properties let via Citylets are up
Average house prices across Scotland are flat but these national figures conceal the trends for specific property types and specific locations
Note that Average Prices for flats have fallen faster than the overall average house price. This is something we will track in forthcoming reports
Edinburgh is the most expensive city re Average House Prices Aberdeen has seen biggest increase over 10 years
This chart shows that since 2011 rents have climbed steadily while house prices have remained flat
Inflation as measured by Consumer Price Index is growing faster than PRS in Scotland – so in ‘real terms’ rents are not going up.
Time to Let is broadly flat
Demand is booming as seen by the steadily declining Time to Lets figures Rents for 3 bed properties in Q3 were £1,233, up by 7.5% on the year. 2 bed properties are the most popular and experienced annual rent increases of 2.6% over the year to £833
For those that need to know what’s going on now we have Optilet.
Our report is based entirely on the properties that are advertised on Citylets and as these volumes have increased we have been able to enhance our report accordingly
Growth in visits to the site has been exponential
(Our growth and brand development has in part been made possible with our tie up with STV in June) (not a bad partner to have!)
(Citylets seems to have caught on as a brand name with the word ‘Citylets’ by far the most popular search term used by people looking for property to rent in Scotland ) (looking at searches made delivering traffic to the Scottish lettings portals, ‘Citylets’ used more often than any generic phrase such as ‘flats to rent in edinburgh’) (Citylets is also recording about 3 times more brand searches than nearest competitors)
2012 has been a very ‘interesting’ year for Citylets and the sector We look forward to helping you make 2013 even more successful. Thank you and as ever if any of you have any specific questions please do come and visit us at our stand