Aberdeen rents knock capital off top spot

Published on Wednesday 21 July 2010 18:28

THE most expensive place in Scotland to rent property is now Aberdeen's sought after West End, leaving Edinburgh's New Town lagging in second place, according to new figures.

Property firm Citylets says the average rent for a two-bedroom flat in Aberdeen's West End was 903 a month between April and June this year.

The cost is far higher than than Scotland's next most expensive area, New Town in Edinburgh, where a similar property costs 856 a month. The New Town had been top of the table in previous studies, while another area previously top of the table, Glasgow's Park and Woodland area, is now in third place.

Rents in the sought-after Aberdeen district are also nearly twice the cost of renting in many parts of Glasgow.

Aberdeen has five areas in the most expensive list and the average monthly rent for two-bedroom flat in the cheapest part of the city (Mastrick and Northfield at 581) is higher than many areas of Glasgow, including Govan and Ibrox (433).

The average rental price in Scotland has risen by 3.3 per cent over the past year to 654.

Dan Cookson, analyst at Citylets, said: "Earlier in the year, we predicted that the rental market in Scotland would continue to improve for landlords throughout 2010 and it's clear that this is indeed the case.

"We've seen two successive quarters where rental levels have grown while time to let figures have fallen.

"One of the reasons for this continued growth is the fact that many would-be property buyers are continuing to find it difficult to purchase their first home.

"Tighter lending and higher deposit requirements remain an issue for many people who cannot secure the necessary funds to purchase a property, so they are choosing to rent until they can make the step on to the ladder."

Citylets says the private rented sector (PRS) is playing an increasingly important role in the provision of housing in Scotland as increasing numbers of people are unable or unwilling to buy. It is predicted the rented sector will grow between 14-20 per cent by 2020.

In the second quarter of this year, the average monthly rent in Aberdeen was 833 (up 2 per cent on the previous year); in Edinburgh it was 755 (up 4.3 per cent) and in Glasgow it was 590 (up 2.6 per cent).

Citylets managing director Thomas Ashdown, said: "There is a better balance now between supply and demand.

"With more competition for available properties, they are being let quicker than before and rents are rising.

"All indications are that this trend will continue throughout 2010. Good news for landlords, but not so good for tenants."

The top average monthly rent for two-bedroom properties is 903for the West End, Aberdeen. It is followed by Edinburgh's New Town at 856. The Park and Woodland area of Glasgow is third, with 828. Holburn and Ferryhill, Aberdeen, is fourth, with a figure of 822. In fifth place is the West End of Edinburgh at 813, followed by the city centre of Aberdeen (766), Aberdeen's Rosemount (766), Stockbridge, Edinburgh (741), Bruntsfield, Edinburgh (739) and Bridge of Don, Aberdeen (732).The top ten least expensive areas to rent are all in Glasgow.