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Has the bottom fallen out of the HMO market in Aberdeen?

A controversial HMO was recently approved on Aberdeen's Rosebery Street
A controversial HMO was recently approved on Aberdeen's Rosebery Street

A north-east council could soon set a limit on the number of short-term rented properties allowed in the area.

Aberdeen City Council is planning to carry out a study into the demand for houses of multiple occupations (HMO) within the city.

It follows a report by council officers which said the private rental market had been significantly hit because of the crisis in the North Sea oil and gas industry.

The authority opted to delay making a decision on whether it should introduce an over-provision policy at a meeting of the communities, housing and infrastructure committee.

Committee convener Neil Cooney put forward the amendment, which means officers will now prepare an in-depth report on every area of Aberdeen.

Last night, he said it was vital for the authority to properly understand the housing situation before making a decision on any policy.

He added: “It’s important we keep the momentum going and have the proper assessment for all wards, so we have a clear idea of what need there is in all our wards.

“We have got to be shown to be reasonable if we say one area is ‘over-provided’ because we could be challenged in court.”

He was speaking just a week after the licensing committee approved a controversial HMO for a Victorian building in Rosebery Street.

More than 15 letters of objection were submitted against the scheme, with a number of people voicing their opposition at the meeting.

Meanwhile, the authority has confirmed there are about 25 student accommodation schemes, consisting of 2,500 bed spaces, currently under construction or being developed.

Officers say this will ultimately reduce further the demand for smaller, rented developments.

Mr Cooney continued: “I have a lot of sympathy for people who feel they are starting to lose family areas in favour of commercial developments, primarily in favour of students, not that I have anything against them.

“I would certainly be keen to look at taking action on over-provision.”

The officers’ report will go before the housing committee in August.