Finding the perfect property as a first-time buyer has become increasingly challenging, especially in recent times. The recession, cost of living crisis, and various economic factors have left their mark on the housing market, making it seem like an uphill battle for those taking their first steps onto the property ladder.
However, amidst the sea of towns and cities across the UK, a glimmer of hope has emerged for aspiring homeowners. Aberdeen, a city known for its rich history and vibrant energy, has just been crowned the third cheapest city in the UK for first-time buyers.
This exciting revelation brings a ray of optimism as finally, things are looking up for first time buyers.. In this article, we will delve into what it truly means to be a first-time buyer in Aberdeen, exploring the possibilities that await and the potential benefits this city has to offer.
Prepare to be inspired as we unravel the journey of those embarking on their homeownership dreams in this thriving Scottish city.
Who qualifies as a first-time buyer?
The first time buyer status isn’t just a description; it comes with benefits which you may be eligible for. Generally, an individual is classified as a first-time buyer if they are purchasing their sole or primary residence and have never held ownership of a freehold or leasehold interest in a residential property.
The definition of a first-time buyer can vary among lenders, and the government has its own set of rules that must be met to qualify for the associated benefits. One such benefit is the removal of stamp duty on the first £300,000 of purchases, up to a maximum threshold of £500,000.
Unfortunately, if you have ever purchased or inherited property previously, you won’t be included in the first-time buyer status. Inherited property, although technically a first-time purchase, does not meet the criteria of never having owned a home before.
Couples aiming to purchase their first home together must also exercise caution. Both partners must meet the requirement of never having owned a home previously to qualify as first-time buyers. If even one of them has owned a property in the past, they will not be eligible for this status.
Similarly, individuals who have the privilege of having their property purchased by their parents or any other party cannot apply for first-time buyer status if the buyers themselves own a home. The ownership of a property, even if not through personal funds, disqualifies them from the benefits associated with being a first-time buyer.
With that being said, here’s what buying your first property in Aberdeen would look like.
What is the average price of a house or flat in Aberdeen?
Those looking to purchase property need to do their research. And, what better than to consider the average prices of property? Here are the current average prices for houses and flats in Aberdeen:
Average House Price in Aberdeen
Here are the current averages for house prices by type of property.
- Terraced £206,784
- Semi-detached £231,369
- Detached £474,178
Average Flat Price in Aberdeen
The current average flat price is £114,175.
What does the market look like for first time buyers?
For first time buyers, you may be interested in one or two bedroom properties.
The averages for those are:
- One Bedroom – £84,534
- Two Bedroom – £136,034
Now, the house market for first time buyers has been extremely dynamic, especially over recent years. It’s no secret that it’s tough to get your foot on the property ladder. If we look at statistics, there were 405,320 first time house buyers in 2021. In 2022, that number dropped to 362,461. It will be interesting to see how much that number will change by the end of 2023. The economy amongst other factors are likely to affect the level of demand for property in the city.
What is the demand for property in Aberdeen?
One of the best ways to gauge the demand for property is to look at how long properties stay on the market. Currently, properties in Aberdeen take around 457 days to sell. That’s about one year and three months! In comparison, properties in Glasgow only take about 79 days to sell, which is less than three months.
This stark difference in selling time indicates that there is less demand for property in Aberdeen. But here’s the interesting part: when there’s less demand, it creates a fantastic opportunity for buyers. With fewer people vying for properties, you have a better chance to snag a great deal.
So, even though it might take longer to sell a property in Aberdeen, this situation works in favour of buyers. You can take advantage of the lower demand and potentially find a property that meets your needs at a more affordable price. Don’t let the longer selling time discourage you. Instead, see it as an open door to explore the housing opportunities and make a smart investment in Aberdeen. The market conditions are in your favour, and it’s the perfect time to find your dream home in this vibrant city.
What does this mean for first time buyers?
For first-time buyers, the current state of the property market in Aberdeen presents both opportunities and risks. On the bright side, it’s an excellent time to purchase properties at more affordable prices compared to other locations in the country. However, when it comes time to sell, you may face some negative consequences.
Unlike many other places where property prices have steadily increased over the past decade, Aberdeen has experienced a decline in prices. In fact, property prices in the city have decreased by almost 10% in the last ten years. This trend suggests that if you’re looking to view your first-time house purchase as an investment decision, it may carry some level of risk. Property prices in Aberdeen may not appreciate rapidly, and other areas might offer better returns on investment.
However, if your intention is to settle down in Aberdeen in the long run, the situation could be worth considering. While the immediate investment potential might be uncertain, establishing a home in Aberdeen can provide stability and a place to build your future
So, if your primary focus is on property investment and quick returns, it may be worth exploring alternative locations that offer more favourable market conditions.
In conclusion, Aberdeen’s position as the third cheapest city in the UK for first-time buyers offers an attractive opportunity to enter the property market. While property prices have experienced a decline in recent years, this can work in favour of buyers seeking affordability.
However, it’s important to note that Aberdeen’s property market may not provide quick investment returns compared to other areas. It’s crucial to carefully consider your long-term plans and prioritise stability over immediate financial gains.
If you do find yourself in the position of needing to sell, perhaps if you’re looking to sell a flat fast, we can help. Here at We Buy Any Home, we don’t look at things like how long it takes to sell as part of our decisions. Instead, we only look at the current market value of your property. If you’re happy with the offer, we can even close a sale in as little as seven days. Get in touch to receive your free cash offer.
