A lettings chief is emphasing the strong investment potential of one particular city – Aberdeen.
DJ Alexander Ltd, the largest lettings agency in Scotland, says that lower average house prices and rising letting income levels combine to make Aberdeen an attractive and sustainable property investment.
The latest government data shows that the city experienced a fall in prices over the last 12 months of £7,517 to £128,485 which was the largest decrease of any region in Scotland.
Adrian Sangster, Head of Property Management & Letting at DJ Alexander in Aberdeen, says this makes the city among the most affordable in Scotland despite it having – at £39,822 – the second highest average wages in the country.
It also has a well-paid more transient workforce working in the oil and gas sector for prolonged periods who require rental properties in the city.
Whilst demand for residential property has fallen due to uncertainty in the political direction of the oil and gas sector in Aberdeen there are increasing signs that the current Westminster government – with the support of the Scottish government – will commit to increased drilling activity and approving existing licences in the coming years.
This means that there is the potential for an influx of well-paid workers requiring accommodation in the private rented sector (PRS) which will boost rental income whilst also providing capital growth.
The latest Citylets Q1 2026 report shows that the average rent in Aberdeen rose by 1.7% year-on-year to £878 per month, with average rents for two-bedroom properties increasing by 1.8% to £812 per month and four-bedroom properties rising by 5.3% to £1,661 per month.
The report also highlights that 42% of Aberdeen properties let within a month, with average time to let at 45 days.
Sangster comments: “There is a very positive message about the sector in Aberdeen which is potentially on the cusp of an increase in property prices coupled with greater demand in the PRS.
“In response to recent events the political consensus is shifting toward a recognition that oil and gas will be required by the UK for decades to come, and it makes more sense to drill in the North Sea than import from across the world.
“For existing and prospective landlords this is a market with solid fundamentals with rents rising, demand remaining good, and reasonable purchase prices.”
He continues: “For investors an added incentive is that Scotland is the only part of the UK offering attractive tax relief on the purchase of properties for the PRS.
“The two main methods of tax relief are multiple dwellings relief (MDR) which is available for purchases of two properties or more in a single or linked transaction and the Additional Dwelling Supplement (ADS) which is usually charged at 8% but, combined with MDR, does not apply to purchases of six properties or more.
“Utilising these reliefs with appropriate advice can produces cost reductions of tens of thousands of pounds on the purchase price”
“While landlords have faced significant regulatory, tax and cost pressures in recent years, there remains a strong investment case, particularly for those with good quality properties, realistic pricing and professional management.”
