Aberdeen, Aspc Stats

[euan2020]

its aright - it wisnae me

its higball thats speaking about buting in Kingseat

[delboypass]

3 bedroom detached houses newbuild in Newmachar at Kingsseat were £170k about a year ago...

R u off your head??

surely you have access to sold house prices you nonce..???

So instead of doing basic research you consider diving into 72/25% shared ownership for more than bigger better detached houses were selling for??

Do some homework

[sandster]

Well thankfully her indoors read the article yesterday and realised what it said was not that different to what I have been saying re. prices are falling, Aberdeen lagging the rest of the UK etc.

Definitely bought more time

[klee]

"Housing bubble could be on brink of bursting"

"There was fresh evidence last night that the north-east housing bubble could be about to burst as new figures pointed to a huge slowdown in the market.

The Press and Journal can reveal that the number of properties for sale across the north-east has almost doubled over the last year, from 1,559 on June 15, 2007, to 2,933 yesterday.

And over the same period, the number of properties available at a fixed price has more than quadrupled, from 154 last year to 726.

The figures were calculated using the Aberdeen Solicitors Property Centre (ASPC) listings for houses and flats across the whole north-east – and prompted warnings last night that prices could be about to tumble."

"Sales appear to be tougher for developers, who are now offering cashback incentives on new homes."

http://www.pressandjournal.co.uk/Article.a...93749?UserKey=0

The important word here is 'could', it doesn't say 'is'.

[maxdiver]

COULD.

Remember that nobody 1 year ago said that this COULD be happening (falling prices, more expensive mortgages etc...)

- except for us on here.

That could is just to say - things are not certain and the future is unknown.

Compared with other newspaper reportings - that is really pessimistic.

Most start by saying "watch out" and end with "buy now before..." "greenshoots of growth" etc...

The P&J is a responsible paper in some ways here - the property ramping is not that bad.

[delboypass]

Lets look at the reality...

The only high earners in Aberdeen are the oil workers..

majority are low earners (or tax sucking scum)

Aberdeen pop: 212,000

Houses for sale 2100.

So about 1% of all houses are available for sale??

Normal wages in Aberdeen i would say are about £25k (some people below, some people above)

There is no industry in Aberdeen bar oil and fish (no others spring to mind -just services).

Average house price is about £200,000 with some dreamers marketing their houses at £300,000 and £400,000 for a standard family home...

There might be a problem with supply. Aberdeen council has been very very slow to increase any stocks both publicly and privately turning down most developments (except where they get a backhander - mostly hotels and Stewart Milne it seems)

Infrastructure is weak. Many major artery roads are rammed. Airport is weak. limited flights, stops at 10pm, many failures of airport infrastructure and staff.

Aberdeen is rife to fall but not until oil companies move out of the area or oil prices reduce by 50% having to put pressure back on cutting costs.

just now hte high price of oil is allowing for expansion which is great.

Still lots of money slushing around.

Stilla scummy city though too although i lived here most my life.

Many areas still not habitable for 'normal' people...Mastrick, tillidrone, northfield, bucksburn, sheddocksly, torry...

Even people earning £50k cant buy a 'house'...

with stewart milne coming in offering £300,000k 2 bed flats...

My only worry is twofold:

1/ The council really need to buck their ideas up, open up the building map (set for 10 years), and start construction of residential, commercial and industrial units.

2/ The Government allow inflation to wipe through the nation destroying any savings and allowing those who have piished into the wind to now sail free.

[delboypass]

The other interesting facts are:

1/ Aberdeen city council is almost bankrupt (about £17m in the red i think)

2/ Aberdeen city council wrote off £1M in unpaid rent...(that is shocking when homes are a valuable resource!)

3/ Aberdeen is closing down all the leisure activitys and schools for cash savings

4/ Aberdeen city council got reduced grant for social housing..slashed in half i believe..(at least places like langstane et all were building units to occupy but then more than likely giving them to people below market rates and sucking taxes in forms of benefits - so still doesnt help us much - damages our cause 3 fold..1/ we provided taxes to build them, 2/ occupants are paying less than market rates and we cannot compete for units,3. occupants normally on benefits so again we are paying to support them..

5/ Aberdeen council still moving into marischal college for £50MILLION!!!!!...cant take this off the books they say as already earmarked..so still in red..

6/ Compound this with the mis-selling of aberdeen real estate which people should have been jailed for...

[The McGlashan]

Hi DBP,

You are quite wrong to say that the only high-earners in Aberdeen are oily. You are also wrong to assume that it's one person per household, the projected average is 2.11 in 2010.

Your assumption that industrial activity in Aberdeen is proportional to the oil price also does not bear scrutiny. No matter how high the oil price, the geology of the North Sea will not change. A bit of infill drilling here and there, a bit of enhanced recovery there, a few more "puddles" becoming economic to suck up by modular subsea development or mobile FPSO's - all small beer, all easily accommodated within the existing industrial and employment base.

Moreover, costs are increasing with the oil price - E&P is an energy-intensive activity in the North Sea. In energy terms alone, it costs (in energy return on energy invested - EROEI) about one barrel of oil to recover 3 barrels of oil from the North Sea. All the enhanced recovery techniques available further erode this already very poor figure, as well as incurring greater capital, employment, consumable and resource costs. Can you see the vicious cycle of increasing costs there? Past about 130 usd/barrel, the higher the oil price (or energy prices in general), the LESS ATTRACTIVE developing North Sea resources becomes. What's the rig rate at the moment? What was it in 2002?

Peak North Sea production came in 2000/2001 and has been declining 8 - 12% per year since. The high oil price cannot change this - flow rates cannot be sustainably increased, no matter how much we wish it were so.

“It's difficult to get a man to understand something if his salary depends on him not understanding it.” —Upton Sinclair

I'm also doubtful about there being a problem of supply of property. The city centre abounds with empty houses and flats - more and more are coming on to the market now, more will do so in the months ahead. It seems that the owners of these empty properties have been holding out for a recovery. As the truth dawns on them, we will see more properties for sale at increasingly realistic prices as owners look to cut losses.

Hold tight, save hard, and be ready to pick up bargains for chump change in 2010, 2011.

[delboypass]

Im hoping and praying McGlashan...but at same time dont want downturn in oil as might be jobless...

Im looking for a number of great indications over the forthcoming years..

1/ Interest rate increase through MPC to tackle inflation (increase savings and point in savings)

2/ Drive to reduce benefit dependancy (far too much in Aberdeen as i expect other large cities)

3/ Reduction on non-nationals from Aberdeen

4/ improved development into residential units throughout aberdeen and aberdeenshire

5/ Americans and golf courses go else where

6/ Reduced taxation rates

7/ Cost of living to decrease slightly (again increase budget and gains)

Anything ive missed??

8/ large crackdown on BTL (LARGE!!) just to stuff them up..make them jump through hoops and more taxation, fixed costs etc

9/ reduce rent costs

[delboypass]

Hi DBP,

You are quite wrong to say that the only high-earners in Aberdeen are oily. You are also wrong to assume that it's one person per household, the projected average is 2.11 in 2010.

Your assumption that industrial activity in Aberdeen is proportional to the oil price also does not bear scrutiny. No matter how high the oil price, the geology of the North Sea will not change. A bit of infill drilling here and there, a bit of enhanced recovery there, a few more "puddles" becoming economic to suck up by modular subsea development or mobile FPSO's - all small beer, all easily accommodated within the existing industrial and employment base.

Moreover, costs are increasing with the oil price - E&P is an energy-intensive activity in the North Sea. In energy terms alone, it costs (in energy return on energy invested - EROEI) about one barrel of oil to recover 3 barrels of oil from the North Sea. All the enhanced recovery techniques available further erode this already very poor figure, as well as incurring greater capital, employment, consumable and resource costs. Can you see the vicious cycle of increasing costs there? Past about 130 usd/barrel, the higher the oil price (or energy prices in general), the LESS ATTRACTIVE developing North Sea resources becomes. What's the rig rate at the moment? What was it in 2002?

Peak North Sea production came in 2000/2001 and has been declining 8 - 12% per year since. The high oil price cannot change this - flow rates cannot be sustainably increased, no matter how much we wish it were so.

“It's difficult to get a man to understand something if his salary depends on him not understanding it.” —Upton Sinclair

I'm also doubtful about there being a problem of supply of property. The city centre abounds with empty houses and flats - more and more are coming on to the market now, more will do so in the months ahead. It seems that the owners of these empty properties have been holding out for a recovery. As the truth dawns on them, we will see more properties for sale at increasingly realistic prices as owners look to cut losses.

Hold tight, save hard, and be ready to pick up bargains for chump change in 2010, 2011.

Damn, high earners, i forgot those in construction and those taking back handers in the council..

So who else earns loads in Aberdeen then???

Oil

Fish

Construction

Also Aberdeen is not only the North Sea...Aberdeen has become a base for most of Eastern hemisphere like Europe, Africa away from western hemisphere...

Edited June 18, 2008 by delboypass

[The McGlashan]

Im hoping and praying McGlashan...but at same time dont want downturn in oil as might be jobless...

Im looking for a number of great indications over the forthcoming years..

1/ Interest rate increase through MPC to tackle inflation (increase savings and point in savings)

2/ Drive to reduce benefit dependancy (far too much in Aberdeen as i expect other large cities)

3/ Reduction on non-nationals from Aberdeen

4/ improved development into residential units throughout aberdeen and aberdeenshire

5/ Americans and golf courses go else where

6/ Reduced taxation rates

7/ Cost of living to decrease slightly (again increase budget and gains)

Anything ive missed??

8/ large crackdown on BTL (LARGE!!) just to stuff them up..make them jump through hoops and more taxation, fixed costs etc

9/ reduce rent costs

Hiya,

First off, if you can - get out of the oil industry, do so before it becomes your life-long career. I left Stolt (now Acergy) in 2000, just at the peak. At the time, I was encouraging the board to invest in heavy-to-medium lift capacity to install deep-water offshore windfarms. I was openly laughed at. A few years later and we get this:

http://www.beatricewind.co.uk/press/technical_3.asp

And much more to come:

http://www.greatergabbard.com/opencontent/...lt.asp?itemId=5

The rest of your points:

1. Check. Inevitable now.

2. Fair enough, but how?

3. I don't like this one - Aberdeen society benefits greatly from a more cosmopolitan cross-section.

4. Not necessary.

5. Check. I take it you mean Trump? I'm not bothered by Nicklaus at Stonehaven. My greatest concern about Trump is that he is more a successful bankruptcy negotiator than property developer. I also despise golf. Interestingly, private golf courses are in contravention of the Land Reform (Scotland) Act 2003. Mass trespass anyone?

http://money.cnn.com/magazines/fortune/for...73899/index.htm

6. Well, that'd be nice, but don't hold your breath - I understand that uk.gov's finances are in a similar state to Aberdeen City Council's. Your best way to reduce costs is to become self-employed, VAT registered and work from home. That way, a great deal of your regular living and household expenses become tax-deductable.

7. No chance. Learn to bake your own bread and make your own soup. Ditch your car and get a bike.

8. I noticed Vince Cable calling for a tax on empty homes, and the end of BTL being able to claim tax relief on mortgage interest. Does this mean I have to vote for Nichol Steven? Again?

9. Not likely given 8.

[The McGlashan]

Damn, high earners, i forgot those in construction and those taking back handers in the council..

So who else earns loads in Aberdeen then???

Oil

Fish

Construction

Also Aberdeen is not only the North Sea...Aberdeen has become a base for most of Eastern hemisphere like Europe, Africa away from western hemisphere...

The knowledge economy. Invisible, carbon neutral, growing. I myself export terabytes of ones and zeroes all over the world for income in many currencies. There are more of us than you might think.

Arts and culture.

Life sciences.

Academia.

Don't bet on the oil patch in Aberdeen surviving because of other hydrocarbon provinces. Hubbert's peak applies there too.

[maxdiver]

I believe Aberdeen will fare better than scotland as a whole.

when looked at over a 5-10 year period in 2010.

you might think that Aberdeen only has oil, fish - but there is a large uiversity presence here.

and i believe that it has more going for it than places like Inverness, Dundee, Perth, Edinburgh, Glasgow.

Anyone know if any aberdeen property auctions?

[The McGlashan]

I believe Aberdeen will fare better than scotland as a whole.

when looked at over a 5-10 year period in 2010.

you might think that Aberdeen only has oil, fish - but there is a large uiversity presence here.

and i believe that it has more going for it than places like Inverness, Dundee, Perth, Edinburgh, Glasgow.

Anyone know if any aberdeen property auctions?

I agree, I expect Aberdeen City to fall less than some of the drops already being seen in Glasgow, Tayside, etc. However, I expect that Aberdeen's buoyancy will be at the expense of the suburbs, particularly those without train links.

Haven't heard of any Abdn auctions, maybe by the end of the year...

Hold tight, save hard, get ready to pick up real bargains for CASH in 2010 / 2011.

[delboypass]

More going for it than edinburgh ...you got to be joking....

Glasgow....how can you compare Glasgow to Aberdeen

In Glasgow there has been massive over building of property..but as same time 50% of glasgow are dependant on benefits...(also much bigger than aberdeen as a population)

Edited June 18, 2008 by delboypass

[aberdeen07]

Homes for Sale in Aberdeen City & Suburbs:

Total: 827

Added this month: 167 (19.3%) - of which 31 added this week.

Fixed Price: 242 (just under 28%) - of which 32 Under Offer; 15 added this month (3 this week).

Almost 1 in 5 Aberdeen city properties on market for less than a month = reasonably good supply coming to market (especially for December).

28% of properties at fixed prices = indication that prices are coming to a peak.

IMO prices in Aberdeen city have either reached their peak or are just about to. Prices will probably remain fairly flat in the first quarter of 2008. After that they'll probably fall back, especially at the high-priced end of the market, with mid-priced properties being less affected. However, rents look set to continue to increase (due to large-scale immigration and increasing numbers of students) which may encourage continuing BTL investment, especially at the lower-priced end of the market (i.e. anything below £90k).

Some anecdotal evidence about rents: I talked to the accommodation officers/departments for both universities in September: they had massive problems finding any kind of accommodation for their students and had to block-book beds in the Youth Hostel on Queen's Road & some cheap hotels around town. Both universities (especially RGU) have experienced a massive increase in student numbers. The number of immigrants (especially from Poland) continues to grow and this is leading to upward pressure on rents. One-bed flats that were renting for £350-£400pcm 12-18 months ago are now renting for £450-£500pcm.

I would expect this to lead to increased BTL purchasers in the short-term which will either push prices up/keep prices at current levels at the 'cheaper' end of the market.

My overall forecast for Aberdeen in 200*:

High-priced properties (over £320k): slight fall

Mid-priced properties (between £90k and £320k): level prices

Low-priced properties (under £90k): level prices/slight increase

Interesting to see how predictions have worked out 6 months on:

ASPC reports a 2% drop in average house prices in first quarter 2008 which compares with my prediction that 'Prices will probably remain fairly flat in the first quarter of 2008'.

I think prices will fall back further for the rest of the year than I had predicted back in December 07, except for properties priced below £90k (i.e. at FPs below £90k or O.O. ca. £80k) since these are still pretty affordable for first-time buyer couples on lower incomes.

For example, a £90k flat less a 5% deposit of £4.5k would require a mortgage of £85.5k. A couple who get a mortgage of 3 times combined salaries would need to jointly earn £28.5k (an average of £14.25k each) to afford a flat at that price.

Rents have definitely increased: it's now almost impossible to get a 1-bed flat for less than £400pcm or a 2-bed flat for less than £650pcm. Compared to about 2+ years ago, there's been about a 20% increase in rents. If the universities keep expanding (and they probably will given government targets of getting over 50% of school-leavers into higher education) then high rents are going to remain until the shortage of student accommodation is tackled.

RGU had over 8,600 students in 2005/6 - that's probably increased to ca. 9,000 by now and the University of Aberdeen had over 13,900 students in 2007/8.

That's over 23,000 students in total - over 10% of the city's population!

Edited July 1, 2008 by aberdeen07

[quine]

http://www.pressandjournal.co.uk/Article.a...44801?UserKey=0

"Property sales in and around Aberdeen have dropped by more than 20% in the last 12 months as confidence in the north-east property market shows further signs of sliding."

Latest figures released by the Aberdeen Solicitors Property Centre (ASPC) and Aberdeen City Council show that 1,584 properties were sold during the second quarter of 2008 – down 21% on the 2,026 properties sold during the same period last year.

However, there was a glimmer of hope for property owners, as the average house price in the Aberdeen Housing Market Area (AHMA) rose 4% to £210,364 compared with the first three months of 2008.

The figure is very close to the average price at the same point last year (£210,536).

Since the second quarter of 2007, the average house price in the AHMA, which takes in commuter towns such as Ellon, Stonehaven and Westhill, has dipped slightly but recovered to virtually the same level.

Last night, ASPC chairman John MacRae said the next six months will give a clearer indication of what the future holds for the north-east property market.

“The second-quarter figures show that, despite severe external difficulties, the local housing market is holding up well,” he said.

“Prices are now appearing to stabilise.

“Despite a strong local economy, the local housing market will not be immune to the difficulties faced throughout the rest of the UK – and we can expect to see a certain degree of rationalisation in the coming months.

“Despite the difficulties that might lie ahead, the Aberdeen housing market is probably better placed to withstand such difficulties than most other areas.

“People are now being advised to sell their home before buying a new one, which has changed the market dramatically.”

He added: “First-time buyers are important to the market because they help free-up people to move up the ladder – but they are now finding it hard to get mortgages. We will soon find out if they save more for a deposit or wait to see if prices drop.”

The Press and Journal revealed last month that the housing market throughout the whole of the north-east was heading for tougher times following a huge rise in the number of properties for sale.

The number of properties for sale almost doubled over the last year, from 1,559 in June 2007 to 2,933 last month. Over the same period, the number of properties available at a fixed price has more than quadrupled, from 154 last year to 726.

[quine]

I don't know how they managed to get the 4% increase between Q2 and Q1 but have to assume some very expensive properties have been sold. Can anyone else think of a reason? It's obvious to anyone watching the Aberdeen market that nothing is selling. Lots to rent though (rents coming down) as that's what failed sellers are doing.

[aberdeen07]

I don't know how they managed to get the 4% increase between Q2 and Q1 but have to assume some very expensive properties have been sold. Can anyone else think of a reason? It's obvious to anyone watching the Aberdeen market that nothing is selling. Lots to rent though (rents coming down) as that's what failed sellers are doing.

Rents coming down? If only! That might be true for rents in new developments of yuppie flats but it's not happening for normal, tenement flats.

Wait 'til September - the return of the students will see rents rising again.

Selling prices haven't increased at all since the end of 2007 despite the 4% increase in Q2.

However, the next 6 months should be interesting!

I expect that mid-priced properties (over 90k, less than 320k) will be worse hit since lower priced properties are still affordable for FTBs and prices for more expensive properties still seem to be holding up for the time being.

[cashinmattress]

Aberdeen is in a bubble of its own. The majority of the people that earn the big oil bucks, at least the ones I know, are self employed. And of these, most of them are still paying reduced taxes (PAYE at minumum wage and the rest as dividends) by lying about their self employed status, and would not pass an IR35 checklist. An indutry wide audit, which will come in due time, will pressure the industry and put a lot of individuals into serious finacial difficulty, and with that the money will disappear. Don't believe me? Well, just in the last two years, the government passed legislation to remove MSC's (managed service companies, or , 'umbrella companies')from existence. There are still tons of people claiming base pay and dividends who are lying to the taxman. I imagine these are the same types who have been taking on the huge BTL liar loans. Now that the government is desparatley seeking cash, these masses of dodgy contractors will be easy prey, and bankruptcy cannot help you when tax evasion and fraud are in hand.

My two cents on the city.

Oh yeah, and as for the students. Students have no money.

[speedmatters]

Aberdeen is in a bubble of its own. The majority of the people that earn the big oil bucks, at least the ones I know, are self employed. And of these, most of them are still paying reduced taxes (PAYE at minumum wage and the rest as dividends) by lying about their self employed status, and would not pass an IR35 checklist. An indutry wide audit, which will come in due time, will pressure the industry and put a lot of individuals into serious finacial difficulty, and with that the money will disappear. Don't believe me? Well, just in the last two years, the government passed legislation to remove MSC's (managed service companies, or , 'umbrella companies')from existence. There are still tons of people claiming base pay and dividends who are lying to the taxman. I imagine these are the same types who have been taking on the huge BTL liar loans. Now that the government is desparatley seeking cash, these masses of dodgy contractors will be easy prey, and bankruptcy cannot help you when tax evasion and fraud are in hand.

My two cents on the city.

Oh yeah, and as for the students. Students have no money.

Oh dear I detect a hint of jealousy here. When you say we contractors are self employed, what we really are is a business that contracts ourselves and our services out. There is nothing wrong with this and is perfectly normal. At the end of the we get no perks that staff people get, being our own business we have to pay our own pensions, health care, insurances, take the hit if we are off sick etc etc. As for IR35 it is an extremely questionable attempt by the government to discriminate between different business types and hopefully with the powerfull lobying from PCG among others it will soon be repealed as its unworkable anyway.

With the question of paying less tax, its true that we do, however that is assuming that we would earn the same amount if we went PAYE. We would not you always earn substantially less and therefore pay less tax. Besides all this I still pay a shed load of tax and for what, for the government to pour it down the social services blackhole and give it to all the layabouts who cannot be arsed to work for a living.

Anyway, even if the government do succed in reclasifying all the legitimate ltd company contractors so they all pay PAYE we will still all be earning very very good salaries so paying a bit more tax on it is hardly going to put most of them/us into serious financial difficulty is it.

I do agree with your student bit though, they are mainly skint because they rightly spend it all down the pub as you should being a student.

[quine]

Aberdeen is in a bubble of its own. The majority of the people that earn the big oil bucks, at least the ones I know, are self employed. And of these, most of them are still paying reduced taxes (PAYE at minumum wage and the rest as dividends) by lying about their self employed status, and would not pass an IR35 checklist. An indutry wide audit, which will come in due time, will pressure the industry and put a lot of individuals into serious finacial difficulty, and with that the money will disappear. Don't believe me? Well, just in the last two years, the government passed legislation to remove MSC's (managed service companies, or , 'umbrella companies')from existence. There are still tons of people claiming base pay and dividends who are lying to the taxman. I imagine these are the same types who have been taking on the huge BTL liar loans. Now that the government is desparatley seeking cash, these masses of dodgy contractors will be easy prey, and bankruptcy cannot help you when tax evasion and fraud are in hand.

My two cents on the city.

Oh yeah, and as for the students. Students have no money.

oooo a bit of a chip on the shoulder maybe?

There is actually very little, if any, difference in the bottom line between contracting and being staff these days. The main difference is the FREEDOM; something you just can't put a price on!

PS Generally you've also got to be very good in your field to be a contractor too!

Edited July 22, 2008 by quine

[euan2020]

wouldn't agree you have to be good in field in finance to be contractor.

even for our ops - lack of staff and if guys want to go contract employer just lets it flow.

There is sharp practices - paying their mother £20K to do ............... what

Edited July 22, 2008 by euan2020

[cashinmattress]

No chip on the shoulder, just insider commentary and some concern. Well I contract, and it pays well too, but I have not gone the route of the PAYE+dividends. It's only a matter of time, but the government will come after the cheats, and claiming ignorance is no defence to HM Customs. Now that the bankers and the realtor's have spent themselves into oblivion for the forseable future, just who else has fat bank accounts on which the government can suck dry? But to put another slice on it, I talk to a lot of the lads in the game and there aren't many company men left on the rigs. Most work has been farmed out to the likes of Petrofac etc, and they in turn subcontract. The way the North Sea oil game is being operated is akin to how war is waged nowadays. No countries can maintain huge armies for the cost. But for less, mercenaries are available and even more expendable. Mobil, Shell, BP all know what they are doing, contract labour is easy to cut free and there are lots of replacements, especially nowadays.

Aberdeen has a few company men left, but most of them are at or past their retirement age and there are no replacements. For some god awful reason, the powers that be in Britain decided to water down and stupify the education system over the last 25 years, leaving kids and grads these day with little usable skills, especially when you consider that its 1970's technology that runs these offshore platforms. On top of it all, the condition of the platforms Britain wide is very bad. Dangerous policies exist in many of the big companies, which gives bonuses based on the savings made by cutting maintenance. Its not a matter of if, but when, the next big incident happens in the north sea, or elsewhere. If the HSE had some balls and would not be held at bay by the politicians, I bet that 60% of the platforms would be declared unsafe to operate. But since crude is high and the taxes are too, the HSE has had their collective lease shortened by Brown and Co.

Production is ramping down and the fields are slowly being sold off to smaller international service companies. All this of course will have an effect on the property market here. I bet you will see a big purge of staff from the big players this fall, and the selling off of more old fields to China and other multinational players.

My piece for the evening.

[aberdeen07]

...

Oh yeah, and as for the students. Students have no money.

But mummy and daddy do...and students, poor or not, still need a place to live.

Around 23,000 students in a city with a population of 200,000 people HAS to have a significant on the rental market and DOES!

Ask the Accommodation Offices of the two universities if you don't believe me: for the past couple of years, come September, there's been great difficulty in finding incoming students accommodation.

In fact, the situation at RGU is so bad that students are living in prefabs on campus and paying £60pw for this 'privilege'!

That's why there's upwards pressure on rents in Aberdeen every September - increasing student numbers without an increase in supply of student halls/residences will keep that pressure on for several years yet at least.