The average cost to rent a home in Dundee is now nearly level with Aberdeen in a dramatic change that has shocked property experts.
The average figure to rent a property in the city is now £722, an all-time high, according to Citylets.
Up the A90 in the Granite City, meanwhile, price rises have slowed with average monthly rates now at £723.
Aberdeen has, for many years, been more expensive than its Tayside neighbour thanks to the offshore oil and gas industry – but a slump in that sector has reduced demand.
What are the average costs in Dundee?
The average cost of renting a home in Dundee is:
- One bed – £458 (up 4.6% since last year)
- Two bed – £706 (up 15.5% since last year)
- Three bed – £941 (up 1.8% since last year)
Thomas Ashdown, managing director at Citylets, said: “There was a time when it would have been unthinkable to talk about the possibility of Dundee’s rents being higher than those in Aberdeen, but it is now very close.
“Dundee has been on the rise quarter after quarter while Aberdeen has been in the doldrums.”
Just four years ago, renting a property in Dundee would cost on average £552.
Figures for the first three months of 2022 reveal the average monthly rent in Dundee rose year-on-year by 12.5%.
The average time to let (TTL) – the period a ‘for rent’ sign is displayed at the property – remains at a historic low of 16 days, in comparison to the Scottish average of 18-25 days.
One and two-bedroom properties have been quickest to rent out in the DD1 postcode, which entails most of the city centre, Dundee University, City Quay and Riverside Drive.
TTLs have averaged only four days for one beds and 13 days for two beds.
However, the DD1 postcode is at the top of the market, with rents of £472 for a one-bedroom property and £838 for a two-bedroom property.
Tenants ‘may be less keen to move’
Eilidh Finlayson, of Dundee residential property management company Finlayson Gore, says rents were at “very robust levels” at the start of the year – but believes tenants will be less keen to move due to the cost of living.
He added: “City living is back. During the pandemic, growth slowed in cities and accelerated in surrounding areas.
“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns.
“The appeal of the city lights appears to have endured some extreme disruption, it would seem.”
It comes as data from flat-share site SpareRoom reveals Dundee has seen the biggest increase in rental demand of any Scottish city or town since the beginning of the pandemic.
Inquiries on the site in the first three months of the year has more than doubled, compared to the same period in 2020.