A shortage of rental properties combined with an influx of North Sea workers is once again driving up prices in Aberdeen.
New figures show that the average rent achieved in the Granite City has increased by 3.4% to £723pm over the past year.
Analysis from Citylets also shows the landlords are finding tenants 17 days quicker than last year.
Demand is high for family homes, with the average rent achieved by a four-bedroom home now rising by 6.3% year-on-year to £1,506pm.
That rental figure is just £150 short of the peak rents achieved before tumbling oil prices sent the market into decline in 2014/15.
And with North Sea activity ramping up, experts believe the rental markets in both Aberdeen and Aberdeenshire will continue to flourish over the next 12 months.
Adrian Sangster, Leasing Director at Aberdein Considine, said: “The Aberdeen rental market continues to perform strongly with properties in the west end of the city in greatest demand.
“This has been driven in part by increased North Sea activity, resulting in many expats returning to the market
“Areas surrounding the city such as the Deeside corridor, Westhill, Stonehaven, Alford and Insch are also experiencing high demand, particularly for family-sized homes.
“I have no doubt the market will remain very busy throughout the summer. However, the availability of stock remains a serious problem and is insufficient to meet the level of tenant demand.”
In its analysis of the Aberdeen market, the Citylets report added: “Aberdeen stands out amongst Scotland’s key cities for its continued reduction of supply over the quarter which is reflected to rising rents, up 3.4% YOY to £723, and a fall of Time to Let (TTL) by 17 days to average 37.
“Whilst this rise is more muted, it still however marks the first significant annual rise in the Granite City for a number of years and stock and TTL indicators suggest this trajectory will continue into 2022.”
Mr Sangster believes Scottish Government policy has driven a number of people away from the private rented sector, just at a time when the industry needs them most.
“This problem will not go away and will, in my opinion, worsen, unless there is a drastic change of rhetoric from Holyrood to one which encourages private landlords, rather than driving them away,” he said.
“We are keen to speak to anyone who is thinking about becoming a landlord, or looking to expand their portfolio.
“There are opportunities opening up and it is a good time to be investing in property in the north-east.”
Click here to get in touch with Adrian Sangster.