Rent hikes for sought after family homes in Aberdeen

Citylets Press releases

Letting experts say “frenzied” Scottish rental market faces landlord exodus

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SHORTAGES of three and four-bedroom family homes to rent in Aberdeen are leaving house hunters facing a double whammy – increasing rent charges and little time to find the ideal property.

Latest research from letting portal Citylets has shown that average monthly rents across all property types in Aberdeen rose by a modest 0.7% to £714 in the last three months of 2021, with 57% of properties taking less than one month to be snapped up.

This compared to Scotland-wide average monthly rents of £869, up 5.2% in the same quarter, with 40% of properties rented within one week and 83% secured within a month.

However, the new research show rents for three-bedroom properties in Aberdeen rose by 9.5% to £979, while charges for four-bedroom homes also increased by 1.2% to £1458.

Meanwhile average Time to Let (TTL) for three and four-bedroom properties in Aberdeen dropped dramatically, by 21 days and 25 days respectively. The average TTL for an Aberdeen property was 33 days, down from 48 days the previous year, echoing letting experts concerns around a lack of stock of suitable rental properties.

By postcode, one and two-bedroom properties were quickest to rent in AB21 (Dyce, Bucksburn, Blackburn, Newmachar) where TTL’s averaged 14 and 26 days, achieving rents of £592 and £748, respectively. At the top end of the market, three-bedroom properties in AB15 (Bieldside, Rubislaw, Cults, Kingswells) recorded an TTL average of only 17 days and achieved typical rents of £1307.

However, it is feared that many landlords are planning to sell up while the property sales market is buoyant, aiming to avoid a wave of greater regulation expected in the market. That will further constrict the supply of available homes.

Thomas Ashdown, Managing Director of Citylets, revealed that the numbers of available properties being advertised across Scotland was down two thirds on the same period just three years earlier.

He added: “High levels of rental activity continued to the end of 2021, sending stock levels down to record lows across Scotland. Competition for property to rent was frenzied in many locations. The average stock levels over Q4 2021 were just 32% compared to the same quarter in 2018.”

Aberdeen’s one bedroom rental market saw a 3.9% drop in average rentals (£447), while two-bedroom units averaged rents of £633, down 2.9% on the previous year. Meanwhile, 59% of one bed and 55% of two bed units were let within one month.

Letting agents are concerned that retaining the existing size of the Private Rented Sector (PRS) will be challenging, with landlords tempted to sell up. Significant changes to legislation are proposed in the Scottish Government’s draft New Deal For Tenants consultation, while the tax burden on landlords is also increasing.

Adrian Sangster, Leasing Director at Aberdein Considine, said: “I expect the Aberdeen market in 2022 will experience a case of déjà vu. Unless there is a dramatic change, low availability of stock will remain the biggest challenge for those looking for a home in the area.

“A shortage of 3/4 bed family homes in particular, is likely to lead to rentals for these properties continuing their upward spiral. Demand for these, particularly in the suburbs and Aberdeenshire, remain high as increased home working means commuting distance for many is now less of a priority.”

Chris Minchin, Director at Winchester Lettings in the city, said: “The trend continued whereby newly refurbished properties were achieving vastly above the average rentals in all property sizes.

“Aberdeen has seen a growth in the oil and gas industry alongside the emerging renewables industry – this has led to a surge of people relocating to the city with a requirement for three and four-bedroom properties being top of their wish lists.”

The Citylets rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers. The report and associated rental maps are available for download here: www.citylets.co.uk/reports

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