Oil price fall checks Aberdeen rents as Scottish trend continues upwards

The crashing price of oil has claimed it latest casualty in Aberdeen –the trend of rising rental costs.

As the Granite City’s economy adjusts to oil trading at around $50 a barrel, a new report from Lettingstats has found that while the quarter December to February saw the average advertised monthly rent for a two-bedroom property across Scotland rise 6.8 per cent year-on-year to £654 , in Aberdeen the price fell by 1.2 per cent to £972.

The UK oil capital’s property and rental prices have been on an upward trajectory but the report would suggest this is coming to an end.

By contrast, Edinburgh saw the average rental price move up to £784 per month, a 5.3 per cent year-on-year rise, while rents in Glasgow went up 6.5 per cent to £665 a month.

Dundee also experienced a rise of 3.6 per cent to £565.

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 three- bed property was £ 1,216, down 7.2 per cent on same period a year ago.

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

The report also found 66.3 per cent of tenants across Scotland spent less than 40 per cent 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.”