Boom-time for 'unique' Aberdeen

Published 23rd Oct 2007

Aberdeen’s status as Scotland’s economic boomtown has been underlined by a detailed study of Scotland’s rental property sector by lettings portal Citylets...

The scramble for accommodation in the Granite City, driven primarily by an increase in energy sector employment, is seeing rent rises far in excess of the rest of the country, with landlords benefiting from the unprecedented demand.

One bedroom flats are now so sought after they command an average monthly rent of £527 – outperforming the traditional pace setter, Edinburgh, where the average is £512.

Rental costs rocketing
Rental costs in Aberdeen have shot up by 12.8% in a year and 4% in the last quarter alone, according to the Citylets quarterly report on Trends in Residential Lettings, the only independent and detailed study of Scotland’s rental market, based on data from 25,000 annual lettings through 200 agents.

Thomas Ashdown, managing director of Citylets said: “The Aberdeen situation is quite unique in Scotland. With demand continuing to outstrip supply for 1 &2 bed flats I’m afraid the news for tenants is not good and we predict further rent increases in the next quarter.

Despite the increase in rental prices, the relative scarcity of properties in Aberdeen has meant a sharp drop in the average Time to Let (TTL) for properties, a key indicator of demand.

One bedroom flats are let on average within just 12 days, with half gone in a week and 90% snapped up within a month. By comparison, the average TTL in Edinburgh is 20 days and in Glasgow it is 32 days.

Star performer
Thomas added: “This is our third quarterly report and Aberdeen has been the consistent star performer. Rents started to rise after the last interest rate cut in August 2005 and have been climbing ever since

“While house prices in Aberdeen have risen about 50% since the third quarter of 2005, the increase in rents hasn’t been that far behind, with average charges for one-bedroom flats up 30.8% and two beds up 28.0% over the same period.

“Compare that with Edinburgh - in the same period house prices have climbed by around 25%, but rents for one bedroom flats have risen by just 5.3%, two beds 8.5%”

“The shortage of these types of properties in Aberdeen would seem to be considerably more acute than in other Scottish cities

Source: ' Move Channel Ltd '

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