Aberdeen Buy-to-Let Guide

Aberdeen is one of the cheapest places to buy property in the United Kingdom. Good news if you’re an investor looking to reduce buy-to-let fees.

The HM Land Registry UK House Price Index puts average Aberdeen property values at £141,358. A year prior, they were £146,767. This represents a –3.70 % difference over 12 months.

The same index indicates that Aberdeenshire house valuations are £200,624 on average. Therefore, Aberdeen prices are over 34% cheaper on average than the rest of the region.

Land Registry indicates that the average UK house price is £287,546. Aberdeen is an incredible 68% less expensive than the rest of the country.

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According to Rightmove, properties in Aberdeen saw an average price of £184,982 throughout the past year. As mentioned, property prices in the area are notably lower than the overall UK average, meaning there could be higher levels of affordability depending on location.

In general, sold prices in Aberdeen over the last year saw a 3% decline compared to the previous year, with a substantial 36% decrease from the peak observed in 2006 when the average price reached £288,204.

Various economic factors and local conditions can influence market fluctuations over the years. Understanding these trends is crucial for buyers and sellers to make informed decisions.

Areas in north Aberdeen include:

• Donside
• Hilton
• Hayton
• Kittybrewster
• Old Aberdeen
• Woodside
• Tillydrone

You can find the University of Aberdeen in this part of the city.

Across the River Don, you can find:

• Danestone
• Cloverhill
• Bridge of Done
• Middleton Park

These areas are known for various industrial estates and innovation parks. Bridge of Don is also a sought-after residential area.

If you go further northeast, you’ll find the towns of Dyce, Blackburn and Bucksburn. Dyce is the home of Aberdeen Airport. The area also houses many large employers from the oil industry. These can be found in places such as the Kirkhill Industrial Estate.

This area is covered by the AB21, 22, 23, 24 and 25 postcodes.

Average Property Prices in North Aberdeen

The average property prices in this area are:

• AB21: £208,303
• AB22: £212,206
• AB23: £200,250
• AB24: £116,348
• AB25: £172,205

Average Rental Yields in North Aberdeen

The average yields are:

• AB21: 4.6%
• AB22: 4%
• AB23: 4.6%
• AB24: 6.7%
• AB25: 4.2%

Areas in this part of Aberdeen include:

• Bieldside
• Braeside
• Cults
• Craigiebuckler
• Hazlehead
• Milltimber
• Bridge of Dee
• Mannofield
• Ruthrieston
• Rubislaw

Tenants prefer Broomhill and Ruthrieston due to mid-market prices and good access to the city. Bridge of Dee is popular with students and families, as it boasts local amenities and is close to Robert Gordon University.

Meanwhile, the likes of Cults and Bieldside appeal to investors and tenants. The area has many large houses that are good for families or potential HMOs. Properties are more expensive than the average price. If you venture further south, you’ll find the A90 Aberdeen Western Peripheral Route, which has made southern areas more accessible.

Postcodes in this area include AB10, 12 and 15.

Average Property Prices in South Aberdeen

Average property prices in this area are:

• AB10: £197,286
• AB12: £196,813
• AB15: £282,677

Average Rental Yields in South Aberdeen

Rental yields in this area are:

• AB10: 4.1%
• AB12: 5.1%
• AB15: 4.6%

Newly constructed properties hold a distinct appeal in the UK rental market, garnering significant interest from tenants and landlords alike.

Their status as recently built developments means they demand minimal maintenance or upkeep before tenants can move in, resulting in a swifter move-in process. This also often means a faster turnaround on rental returns for landlords, fostering a mutually advantageous dynamic between both parties.

In Aberdeen, various plans are in place to address long-term housing shortages in the area. New housing schemes, such as the Cloverhill site in the Bridge of Don, are expected to increase energy efficiency and boost the local rental market.

Considering this emerging market trend, delving into new-build investments like these could potentially yield profitable opportunities in the future.

However, while Mansfield does offer some options, investors may find more appealing deals on new-build properties and access to a broader array of potential tenant demographics in other cities, such as Liverpool or Manchester.

So, is Aberdeen the best place to invest in property?

The area can be a fantastic place for a property investor in the UK, boasting cheap property prices and a healthy rental yield. The economy and student population also provide inviting opportunities for most investment strategies.

However, if you are looking for a quality student property investment market, you may want to consider Liverpool property investment.

Liverpool boasts four top universities and a student population of 70,000. In addition, Liverpool has a student retention rate of 31%.

Not only does this create a demand for student properties, but it also creates a demand for properties suitable for young professionals.

In addition, Liverpool offers a superior arts and culture scene to Aberdeen. Coupled with similarly high yields in certain parts of the town centre and cheaper-than-average property rates, Liverpool is the go-to place for capital growth, a healthy ROI and quality of life.

Finally, Liverpool has a thriving new-build and regeneration property market in various up-and-coming zones across the city. For example, off-plan properties like Central Park and Heaps Mill are situated in the Baltic Triangle, one of the coolest neighbourhoods in the entire country. This area attracts students and young professionals thanks to its proximity to the waterfront, the local universities and a bustling nightlife scene.

Delve deeper into the North West with RWinvest’s overview of Warrington investment properties!