Oil crisis brings rents in Aberdeen crashing down 20% in a year

Shortly after the passing of the Private Housing (Tenancies) Bill in the Scottish Parliament, average rents in the country have hit an all time high.

The new legislation introduces the ability of local authorities to apply rent caps, while also abolishing the ‘no fault’ ground for possession.

According to Scottish website Citylets, average asking rents in Scotland now stand at £767 per month, up 2.1% on the year.

Rents have grown in the major cities with the exception of Aberdeen, hit by thousands of job losses in the oil industry.

Here, average rents 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 with years of gains already unwound over a relatively short period.

Whilst it is likely the rate of decline in Aberdeen will be close to or at maximum, the fall in rents is unlikely to bottom out until well into 2017.

As expected, the Edinburgh market continues its charge towards the £1,000 average mark with rents up 6.6% on the year to stand at £972.

In Glasgow average rents are £710 per month, up 4.6% on the year, while average rents in Dundee are up 5.6% to stand at £620.

Citylets MD Thomas Ashdown said: “With the exception of Aberdeen, average rents in Scotland’s main urban areas are on the rise quarter after quarter.”

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3 Comments

  1. Robert May

    Been there,done that ! 30 years ago today I left the Oil and Gas industry because of the price of Oil. I moved to Devon over the weekend took a 75% pay cut and started an apprenticeship into Agency working for John Wood in Seaton.

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    1. AgencyInsider

      So you were an ‘economic migrant’. How very trend-setting…

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      1. Robert May

        That is exactly what I was; designing oilwell cement one Friday by the following Friday I had sale agreed my first property in Seaton having walked into the job centre in Honiton on the Monday morning, interviewed and started on the Tuesday. Almost immediately  I got my hands on the  dumb terminal ‘Wyse’ Team computer system. Although I loved, genuinely loved Agency the engineering interest was in the tech to power agency. That was G2 I’m now on G5.

         

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