Lettingweb figures show super fast rents being achieved.

It has been well documented that the local private rental sector has enjoyed something of a boom over the past couple of years, with demand for for flats to rent in Edinburgh reaching a record high. Some news that has received fewer headlines though has been that rental properties are being snapped up at record-breaking speed.

Whilst the average rental value of Edinburgh properties let in September and October this year remained fairly static compared to the same period in 2010, the average time to let decreased by a massive 63% - from 35 days to 13 days, according to figures published by Lettingweb.

What does this mean for tenants?

Tenant demand for property significantly outstrips supply at present. This is likely to be a consequence of the continued pinch on mortgage lending, the requirement for high deposits and fears over an inevitable rise in interest rates. It appears that would-be buyers are unable to get on the property ladder and have no option but to rent in an increasingly competitive market.

As a result tenants are facing stringent competition for rental properties. Tenants now understand that properties are not staying on the market for long and are prepared to make decisions on where to live faster than ever. Last month a 2 bedroom flat in Edinburgh was let in a mere 8.6 days; tenants have no option but to act decisively and quickly.

What does this mean for landlords?

Given these market conditions, basic economics would suggest that rental prices should soar. Interestingly, this has not been the case with the average rental value remaining fairly static. The largest increase in average rental value from this time last year has been for two bedroom flats in Edinburgh, which have risen by a modest 2.4% (lower than the UK inflation rate).

Perhaps the most intriguing market dynamic facing landlords at the moment is the speed at which properties are being let. This suggests both welcome and worrying news.

Clearly, landlords and agents alike will welcome the opportunity to maximise the occupancy of their properties. On the other hand, the deluge of increased enquiries and the speed at which they arrive creates additional administration and cost. It also creates a requirement to ensure that prospective tenants are being referenced correctly, accurately and quickly.

It is perhaps time for landlords and agents alike to modernise their systems to allow them to be responsive to the changing market conditions.