Finding a location that is a Buy-to-Let student hotspot can offer a great place to make an investment. Students are a great demographic who will rent property throughout the duration of their studies. However, the issue is finding a city with a high population of students who require properties. Aberdeen has two universities and plenty of students, which provides a potential location to make a Buy-to-Let investment. However, just because there are students ready to rent doesn’t necessarily mean that it can give the best ROI.
In this article, we’ll be taking a look at the property market in Aberdeen and if it is a Buy-to-Let student hotspot.
What does the Aberdeen rental market look like?
First things first, we need to delve further into the Aberdeen rental market. Take a look at the following statistics:
- The average price of properties for sale: £173,648
- Average monthly rent: £997 pcm
- Average rent by property time:
- Flat – £832 pcm
- House – £1,365 pcm
- Room – £408 pcm
The above statistics are based on the current market at the time of writing. So, the averages are pretty similar to the UK average as a whole. However, compared to other major student hubs, Aberdeen doesn’t perform as well. Take Manchester, for example; the average monthly rent is £1,483 pcm, but flats are regularly rented out at a higher price on average than houses at £1,618 pcm. This is almost double the average rent for an apartment in Aberdeen. However, the average house price is much higher. These figures really do call into question the legitimacy behind Aberdeen being a good Buy-to-Let student hotspot.
Additionally, it has been found that Aberdeen is one of the only locations in the UK where house prices have actually fallen rather than increased. Therefore, investing in a property that may reduce in value is a risky investment.
How many universities does Aberdeen have?
Aberdeen is home to two universities. The University of Aberdeen and the Robert Gordon University.
University of Aberdeen
As one of the oldest universities in Scotland, the university was founded in 1495. It has a solid academic reputation and consistently ranks highly among the top universities in the UK and globally at large. The university offers education in fields such as business, medicine, humanities, and law, amongst others. As a result, the university attracts students both locally and globally.
The university is spread across three campuses in Aberdeen. They include the locations of Old Aberdeen, Foresterhill, and Newburgh. Therefore properties in these areas are quite attractive to students due to their proximity to campus.
Robert Gordon University
The university was founded in 1992, making it just over thirty years old. However, the university is another well-ranked facility that accommodates over 16,000 students from around the world. The university campus is located in Garthdee along the banks of the River Dee. Its location is, therefore, further away from the city centre compared to the University of Aberdeen. Nonetheless, properties around the area are still attractive options for students looking to live near the university campus.
How many students are there in Aberdeen?
In terms of university students alone, Aberdeen is home to over 30,000. This is made up of 14,000 from the University of Aberdeen, while Robert Gordon University enrols over 16,000.
The implication of this is clear, 30,000 students are likely to be looking for accommodation in and around Aberdeen. This definitely provides an incentive to make Aberdeen a buy-to-let hotspot.
Does Aberdeen have popular student areas?
As with any city with a high presence of students, certain areas are definitely popular among students. Consider the following areas:
As the area is home to the campus of Robert Gordon University, you’ll regularly see students in and around the area. Students may choose to live close to the area to ensure they reach university on time. Therefore, it can make for a great spot to have a buy-to-let investment.
One of the oldest parts of the city but still a popular location nonetheless. The area is home to one of the campuses of the University of Aberdeen. The area receives visitors looking to explore the area regularly due to its historical appeal. As a result, some may even choose to find a place to live in the area due to its unique charm.
Nightlife – Torry/FerryHill – AB10/AB11
Aberdeen offers plenty in terms of nightlife. As a result, students will more than likely look to explore these areas. There are quite a few clubs which cater to different crowds and are all scattered around the AB10/AB11 postcode area. Now granted, not all students may want to live directly in the centre of the nightlife scene; however, there’ll always be some who will choose the parties over comfort.
Shopping – Union Street
The main street in Aberdeen is Union Street. Here, there are plenty of shopping and dining options which regularly draw in the local residents. Students are no different. Additionally, in the vicinity of Union Street is Belmont Street, where there are pubs that cater to students.
What do students look for in accommodation?
Students, while not the fussiest of tenants, will still have a few requirements that they look for when looking for accommodation.
One of the most important factors that students will be interested in is the location of the property. They may wish to live close to the university campus or near other amenities and facilities. Some students may not be able to secure accommodation in student halls or halls of residence and, as a result, may have to look for private arrangements. Therefore, they may still wish to live close to student halls to be close to other students.
Next, students may look at the features of the property. Ones that come with furnishing may be of more interest to students, so they don’t need to buy or move furniture. Additionally, the number of bedrooms can be an important factor for students. As they may wish to live with friends, they may require a two, three or four-bedroom property. This is because it can be more affordable to live with others to split the bills.
Finally, the price. As many students will be reliant on student loans, they will look for accommodation with a set budget in mind. This will narrow down their options; however, as students, they may not have an option besides trying to find a good deal.
Aberdeen does play host to many students, and there is definitely a demand in the city for rental properties by students. However, comparing the city to other student hubs in the UK indicates that Aberdeen may not be the best choice, especially with property prices decreasing. Although the real estate market is quite dynamic so this may not always be the case. However, for the foreseeable future, it seems other cities may offer a better buy–to–let hotspot than Aberdeen.
If you currently own a buy-to-let property that you’re looking to sell, we can help. One of the most significant issues with trying to sell a tenanted property is finding a buyer willing to take over the rental agreement. Here at WeBuyAnyHome, we act as cash house buyers and can purchase tenanted property in as little as seven days. Get in touch to find out more.