The average cost of renting a property in Aberdeen has fallen by almost £225 a month due to the downturn in the oil and gas industry, according to a new report.
The last figures from the Citylets leasing portal reveal a typical Granite City property now rents at £865 per month – down 20% on the £1,090 it would have fetched a year ago.
This means tenants are nearly £3,000 a year better off – respite from years of having to pay some of the highest average rents in the country.
Average rents in Aberdeen have now fallen by more than 20% over the year, the steepest decline ever recorded in any Citylets quarterly report.
The typical property in Aberdeen now rents at £865 per month taking 53 days to let.
Average rents are now below that of five years ago so years of recent gains have already unwound over a relatively short period.
“And still some politicians refer to Aberdeen as a problem area for rent rises. Such have the extent of falls been that one and two bed properties are now renting
for close to official mid market rent values for the region,” the company said in its latest report.
Citylets said that whilst it is likely the rate of decline in Aberdeen will be close to or at maximum now, the fall in rents is unlikely to bottom out until well into 2017.
The figures follow Aberdeen Solicitors Property Centre (ASPC) statistics for the first quarter of 2016 showing a decline in sales and a slight drop in average home values.
With less oil and gas workers seeking accommodation in Aberdeen as the market adjusts to the low commodity price, average rents are lower than the levels landlords had come to expect.
It means that landlords are having to work harder to market their properties and ensure they are competitively priced.
Adrian Sangster, National Leasing Director at city law firm Aberdein Considine, said the market was “challenging” for landlords who facing up to lower rentals and increased voids, where properties sit unlet.
“Whilst these changes appear to have been fairly dramatic in the short term, they are less so when compared to even three years ago.
“Also despite negative headlines and high available stock, there remains healthy tenant demand.
“We have carried out around 800 viewings during quarter one, however tenants have plenty of choice so properties need to be realistically priced.”
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