Central belt rentals overtaken by Aberdeen

Letting costs in Aberdeen have overtaken those in both Edinburgh and Glasgow, new figures have revealed.

Research compiled by rental company Citylets evaluated letting costs in the first quarter for more than 45,000 properties and found that Aberdeen had overtaken the southern Scottish cities for the first time.

However, the firm made moves to reassure investors in the central belt that the increase reflected improving demand in the highlands city, rather than a dip elsewhere.

Citylet’s data suggested that a one-bedroom flat in Aberdeen is currently rented out for an average of £499 per month, compared with Edinburgh’s £494 and Glasgow’s £434 for similar properties.

The rental cost represents an increase of 18.4 per cent for the Aberdeen market compared with the same period last year.

Managing director of Citylets Thomas Ashdown commented: "I was aware that the rental market in Aberdeen was extremely strong but I must admit to being slightly surprised by just how well it has been performing.

"The fact that it has now overtaken Edinburgh in both rental prices and demand for one and two-bedroom properties is astonishing."

Investors considering whether to purchase a house for buy-to-let reasons in any area may be interested in recent figures from the Bank of England released yesterday.

The bank identified a fall in the number of mortgage approvals in March to an 11-month low, which could suggest that recent interest rates increases have begun to impact on the property market.