Is now a good time to buy or sell a home in Aberdeen?

As reported in the media recently, chancellor Rachel Reeves has backed Financial Conduct Authority (FCA) plans to loosen restrictions on mortgage lending.

Sounds promising, but what does that mean for the market here, and is now the right time to make your move?

What’s changing?

The FCA has outlined plans to review current lending restrictions tightened after the 2008 financial crisis: a move it says could boost economic growth and home ownership.

This move isn’t without its critics with risks cited include potentially encouraging over-borrowing. For now, though, the shift seems designed to strike a balance: supporting growth in the housing market while keeping consumer protection in place.

What does this mean for Aberdeen and the north east?

The latest data from the Aberdeen Solicitors Property Centre (ASPC) gives us an insight into what’s happening in the market here.

According to ASPC’s Q4 2024 report the Aberdeen house price index shows a 3.3% drop in prices between Q4 last year and the same period in 2023. That said, prices have risen 0.8% from the same time five years ago.

More encouragingly, ASPC chairman John MacRae says the findings show property sales across all types are up on the same quarter in 2023 —

• Flat sales increased 16.7%

• Semi-detached homes grew 47.1%

• Detached houses up 60.6%

He adds: “Our early weeks [of 2025] have seen good levels of insertions, matched by similar levels of sales. It’s reassuring to see this so early in the year.”

What we’re seeing in the north east property market

The ASPC report certainly mirrors our experience. Inquiry levels from the start of January have been good both from existing and new clients buying and selling, with the market remaining fairly steady, despite the higher cost of living.

I expect any positive changes in mortgage conditions that enable more people to secure a mortgage will have a positive effect on the market here.

Trends we’re seeing include —

• There remains an oversupply of one and two-bedroom flats in the market

• Mid-size family homes continue to show steady sales

• Sales of properties in the suburbs remain buoyant. ASPC statistics show between 1 October 2024 and 31 January 2025, three and four-bedroom homes in Bridge of Don were selling on average between 1.6% and 2.5% below valuation within 86 and 123 days on average — this compares well with the same period a year before where properties were taking on average between 116 and 193 days to sell and were selling between 2.3% and 2.7% below valuation

• Commuter areas such as Kingswells, Westhill and Ellon remain popular. Take Ellon for example. For the October 2024 to 31 January 2025 range, three-bed detached properties were selling on average 2.1% above valuation and taking 98 days on average to sell with four-beds around 0.7% below valuation and around 147 days. The same period the previous year saw the former achieve a sales price on average 2.2% below the valuation and take around 114 days to sell with the latter seeing an average of 2.3% below valuation and 112 days to sell

Is now a good time to move in Aberdeen?

The short answer is — it depends on your circumstances.

For example, those looking for more of a project are likely to be able to secure a property at a reasonably good price. Conversely, if you’re selling, the more well presented a property is, the higher the chance of generating more interest and potentially negotiating a higher sale price.

And there could be positive news for those renting. If the Financial Conduct Authority makes changes to the current lending rules — it’s currently reviewing not only how much you can borrow but generally how affordability is assessed — lenders may recognise regular rental payments in affordability assessments. This means if someone can currently afford their rent at ‘x’ pounds per month then the likelihood is that they can afford the same on a mortgage.

A key point for first-time buyers to remember too is that Scotland’s First-Time Buyer Relief makes buying a home even more affordable. If you’re purchasing your first property, you can claim relief on the Land and Buildings Transaction Tax (LBTT) for properties priced up to £175,000. That means you’ll save up to £600 — a significant help when budgeting for things like your deposit or moving costs.

Whether you’re buying, selling, or just thinking about your next move, our team of property experts will give you through the process from start to finish, making the process as smooth as possible.

If you have any questions, or would like to arrange a free valuation, contact the team today.