Oil price fall hits Aberdeen rents

ABDERDEEN has bucked the trend for rising rental costs as the city adjusts to the collapsing price of oil, according to a new report.

Picture: Stephen Mansfield
Picture: Stephen Mansfield

Research by Lettingstats found the average advertised monthly rent for a two-bed property across Scotland was £654 in the quarter December to February, up 6.8% on the same time a year ago.

In Edinburgh the average cost was £784 per month, up 5.3% year-on-year, while rents in Glasgow went up 6.5% to £665 a month.

Sign up to our daily newsletter

Dundee also experienced a rise of 3.6% to £565 but in Aberdeen the average rent of a two-bed property fell by 1.2% to £972.

The report by Lettingstats, the research arm of letting agent Lettingweb, said: “All eyes have been on the Aberdeen economy since the dramatic collapse in oil prices and it is fair to say that the rental market does seem to have adjusted accordingly.

“Advertised rental volumes are always lower during the winter however the average rent for a 3 bed property was £1,216, down 7.2% on same period a year ago.

“Two bed properties were below the thousand mark at £972, down 1.6% on the year.

“Time will tell if these are temporary or part of a more significant re-adjustment of the Aberdeen housing market.”

The report also found that across Scotland 66.3% of tenants spent less than 40% of their household income on rent.

Dan Cookson, head of research at Lettingweb, said: “These new figures show that whilst the last year has shown some rental level growth across most of Scotland, available property remains affordable for the vast majority of tenants and prospective tenants.

“That affordability is crucial to the further growth of the market, as it seeks to meet continually increasing demand.

“Policymakers need to ensure that steps are taken to encourage further supply into the market, in order that increasing affordability can be maintained.”