A recent report from Rightmove has revealed that Aberdeen, a former Scottish property hotspot, is now the cheapest city in the UK to get on the property ladder. This is a stark contrast to 10 years ago when Aberdeen was formerly one of the most expensive areas in Scotland to buy a property. This drop is said to be largely influenced by a drop in the price of oil in recent years. Although the price of oil is now on the rise, this is yet to influence the property market in Aberdeen.
Rightmove’s analysis revealed that the average asking price for a typical first time buyer home in Aberdeen was £102,601. This would make monthly mortgage payments of £406, with a 20% deposit and 35 year term.
These property prices look even more appealing when compared to the cost of renting. For a 2 bedroom or smaller home in the UK, the cost of renting has increased by 39% in the last 5 years, while the cost of buying has increased 19%
Rightmove’s property expert Tim Bannister said:
“These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.
“Longer mortgage terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage.”
Rest of Scotland
The research included 50 cities across the UK, with Aberdeen being the only Scottish city in the top 5 cheapest cities. The next cheapest in Scotland was Dundee who were 7th on the list, and the only other Scottish city in the top 10. The average asking price for a first time buyer home was £116,191. With a 20% mortgage and 35 year term, this makes a monthly mortgage payment of £460. Edinburgh may be the new Scottish property hotspot as it was the most expensive in Scotland, and 10th most expensive in the UK. With the same deposit and mortgage term as above, the average monthly mortgage payment is £946, and average property price £239,028.
Home Report in Scotland
No matter where in Scotland you are buying, you should read the Home Report carefully before making an offer. All sellers in Scotland are legally obliged to provide a Home Report. The Home Report is a report on the condition of the property. It will highlight any areas of concern such as issues with damp, woodworm, or structural issues.
If the Home Report flags some areas of concern, you may wish to consider organising a property survey to investigate these issues further. For more information visit our property surveys webpage.
References
https://www.rightmove.co.uk/news/articles/property-news/10-cheapest-cities-first-time-buyers/
https://uk.news.yahoo.com/finance/news/britain-most-least-expensive-cities-060000275.html
