"A property may be worth £200k but a client’s made an offer of £230k just to make sure they get it"
With rising interest rates and the cost-of-living crisis continuing to pinch, it’s a bleak market for first-time buyers. However, it’s not an English town but rather a Scottish city that’s been named the best place for these buyers to get on the property ladder – and for a reasonable price.
Research from SPF named Aberdeen the best place to live for first-time buyers looking to squirrel together a deposit quickly – with the average house price in the city sitting at £125,000. And this, in general, is somewhat reflective of the Scottish housing market at large.
Speaking to Mortgage Introducer, Greig Brown (pictured), mortgage director at Aberdein Considine, said that the current climate is an inflection point, where some much-needed investment could catalyse progress for key demographics like first-time buyers.
‘An opportunity for innovation’
“What we really have an opportunity for is some innovation across the market, particularly from lenders. For first time buyers in particular, they could do with some support in that area. We have seen it before, but I'd say over recent times there's been a lack of that,” said Brown.
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In Brown’s view, this void calls for inventive financial products or tailored solutions to help young buyers secure a foothold in an increasingly competitive market. And government support, a past lifeline for the sector, is another area ripe for rejuvenation.
“We’ve seen previous incentives work really well, whether that’s the First Home Fund, Help to Buy or different schemes to help support deposits or transactions in the market,” added Brown. “The last few years have been difficult for lots of reasons. We've seen rates that we've not seen for a long, long time. However, things are settling down a bit now - so maybe now is the time to look at how we can stimulate the market more, get people moving again and encourage first-time buyers.”
However, challenges persist, ranging from the rising cost-of-living to persistent supply constraints. The scarcity of housing stock in some regions has compounded affordability woes, leading to situations where buyers need far more than just their deposit.
“In different parts of Scotland, you still see massive over-offer situations,” explained Brown. “Not only do you need the deposit to buy the house, but you also need that extra amount to secure it. That's definitely one of the challenges, as well as the affordability side for lenders.”
At Aberdein Considine, Brown said that they leverage an integrated service model – offering an “all under one roof” style solution to get rid of any hidden fees.
‘All under one roof’ strategy
“We have mortgage advisers, wealth advisers, and we’re also a legal firm with a huge property division,” said Brown. “We can sell someone's existing home and help them find their next home through our estate agency side. And we obviously do the finance side through the mortgage team, completing all the associated legal work that goes with a home purchase. Your solicitor is speaking to your estate agent, who is speaking to your mortgage advisor, and we all work under the same firm. That lends itself to good communication and a smooth transaction.”
This holistic approach is particularly impactful given the fragmented experiences many buyers face elsewhere.
“Often, you’re having to deal with four or five different companies or firms to get all of those services that you’ve just mentioned,” Brown pointed out. Aberdein Considine’s ability to streamline these interactions not only saves clients time but also minimises the stress of coordinating between disparate entities.
This approach comes in handy considering the ultra-high property demand in certain areas of Scotland. As Brown explained, they’re seeing clients giving offers faster than ever before, meaning they need to have the highest bid from the off.
“A property may be worth £200,000 but a client’s made an offer of £230,000 just to make sure they get it,” said Brown. “And that's not uncommon. So, if you're a first-time buyer with a 10% deposit - £20,000 for example – you need another £30,000 on top of that, meaning you actually need £50,000 to be able to buy that property. And it's just making it more and more difficult for a lot of first-time buyers because the demand is so high.”
‘This is not specific to Scotland’
And, with neither interest rates or property demands looking like they’ll decline any time soon, for first-time buyers it’s a choice between taking that leap or waiting to see what 2025 brings. For Brown, he believes it’s up to both the government and lenders to help make that market more appealing to first-time buyers – or else it’ll be more of the same in the years to come.
“This is not specific to Scotland,” he explained. “But in certain parts of Scotland we see it much more than in others. I think anything we can do to try and improve that supply, to make it more attractive for people to get on the property ladder, the better.”
And if anyone’s positioned to know how to not only survive but thrive in the current market it’s Brown. After all, his leadership style, he told Mortgage Introducer, revolves around people - despite the challenge of managing a geographically dispersed team.
“The absolute key for me in terms of leadership is communication,” said Brown. “Our team is spread across the country, so you’re not seeing body language or picking up normal cues. We’ve implemented simple things like team chats—our advisors, case management team, and mortgage telephony team each have one. It’s like having a virtual support person, where they can ask for advice, run cases by each other, and share a bit of banter, which brings people together.”
Reflecting on the team’s recent Princess Royal Training Award, Brown added: “It’s about focusing on people development. It benefits performance, camaraderie, retention, and even volunteering. If you don’t invest in your team, you’ll spend more time retraining or recruiting replacements.”
