23 May 2016

What’s next for the Aberdeen rental market?

What’s next for the Aberdeen rental market?

 

We’re not saying anything new when we highlight that a drop in oil price has had a detrimental impact on Aberdeen’s economy. 

However, what’s the current situation within the rental market, and is there any chance that it is going to change any time soon?

According to the latest statistics, Aberdeen is currently ranking among the slowest for filling vacant properties.

Landlords are taking, on average, 33 days to fill a property – ten days slower than the UK average.

Financial gap

Some experts have warned that this gap in rent could cost landlords approximately £913.

This also showed that Aberdeen has the highest rate of tenancy turnover, with the city showing an average of 19% leaving the property before the end of the tenancy agreement.

The causes for this could be two-fold. Aberdeen has seen thousands of redundancies due to the oil and gas downturn.

Consequently, many individuals and their families are leaving the city to seek alternative employment. Secondly, with a larger option for reduced rental rate and higher spec property to boot, renters are opting out of current leases and entering into new deals, which work more to their advantage.

Demand still strong

But is there any hope for the rental market in the coming months? We believe that, although Q1 of 2016 has brought fresh challenges to the Aberdeen rental market, there is still an opportunity available to landlords.

Demand for properties is still plentiful, we carried out more than 800 viewings in Q2 so far, but landlords have to invest in their property spec and consider the future. A well-marketed, well-maintained property will stand out to potential tenants, particularly over one that hasn’t seen a lick of paint for some time.

Landlords also need to be open to negotiation. Where once landlords could pick and choose rental value, they now need to be considering the average rental value in the market and setting themselves competitively.

Scotland's property experts

If you are looking to buy, sell or lease property, Aberdein Considine can offer you the support of some of the most experienced property professionals in the country.

Our leasing and property management team act for more than 2,000 landlords across Scotland.

We are also an independent broker of buy-to-let mortgages and can offer home loans without any hidden fees.

If you would like to speak to a member of our team, call 0333 0066 333 or click here

* Your home may be repossessed if you do not keep up repayments on your mortgage.

 

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