Chris Minchin is the director of Winchesters, a trusted Aberdeen-based lettings and property management company. With a wealth of knowledge spanning over 13 years in the industry, Chris is the go-to authority when it comes to navigating Aberdeen's rental market. In this interview, we asked Chris for an insight into the dynamics and trends of the Aberdeen rental scene. Whether you're an experienced landlord looking to branch into a new area or thinking about getting into buy-to-let for the first time, here’s what you need to know to maximize your investment.
What are the most popular types of rental properties in Aberdeen?
“One-bedroom and two-bedroom properties, especially those freshly refurbished. These units command rental rates above the city's average and really do push on price. Tenants are willing to pay more for modern, well-maintained properties.”
How big is the student rental market in Aberdeen?
“Aberdeen boasts a large student population, exceeding 33,000 year on year. The pandemic initially impacted the popularity of House in Multiple Occupation (HMO) properties as remote learning limited students' ability to form larger friendship groups. However, we are seeing a gradual return of second-year students in larger groups, indicating a resurgence in demand for HMO properties. This trend is expected to continue and will be back on track by the 2024/2025 student intake.”
What is the average length of tenancies in Aberdeen?
“The time it takes to rent out a property in Aberdeen varies based on size and presentation. Modern, refurbished properties tend to find tenants in less than 20 days, while older units may linger on the market for around 30-35 days. Aberdeen is inherently a transient city, and the rental landscape is characterized by relatively short lease lengths for flats, averaging 15-18 months. Houses tend to be much longer than this.”
What are the average monthly rent prices in Aberdeen?
1-bedroom: £575-£600
2-bedroom: £700+
3-bedroom HMO: £1,200
4-bedroom HMO: £1,600+
Family homes: £1,500-£3,000
What are the most popular areas in Aberdeen for rental property?
“When it comes to rental properties, certain neighbourhoods stand out in Aberdeen, including Union Grove, Urquhart Road, King Street, and the Rosemount area. These areas offer a blend of convenience and amenities that tenants find desirable.”
Why should investors invest in Aberdeen?
“Aberdeen is a prime location for investment. While property prices have remained suppressed, rental rates have seen a dramatic upswing due to increased demand. The city has moved away from being a one industry city and has diversified its economy beyond the oil and gas industry into renewables, leisure, drinks, and tourism over the last seven years. This diversification has made it a less risky proposition for investors.”
It's clear that with ongoing investment in the city, the rental market in Aberdeen is set to flourish. There's a pressing need for a steady supply of new and renovated properties to meet the rising demand from tenants. Investors who seize the opportunity now can reap the rewards of a dynamic and evolving rental market in the Granite City.
