Posts with tag: Scottish property prices

Property sales in Scotland soared during 2015

Published On: March 11, 2016 at 1:56 pm

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A substantial increase in residential property sales in Scotland saw total value of transactions pass £16.5bn in 2015.

According to figures released by Registers by Scotland, 97,701 sales took place across the country over the last year. This was the highest annual figure since 2008 and a rise of 4.5% in comparison to 2014.

Rises

The largest volume of sales was recorded in Edinburgh with 11,991, up by 8.3% on 2014. This was followed by Glasgow, where sales totalled 11,616. East Renfrewshire saw the largest yearly growth in sales, up by 13.1%. Aberdeen was the area with the largest decrease, where sales transactions slipped by 11.8%.

On average, the price of a residential property increased by 3.6% to £169,402 during 2015.

Annually, the largest change in average price was in West Lothian, where prices rose by 9.1% to hit £161,014. The sole local authority area to show a fall in average prices was again East Renfrewshire, where values slipped by 0.6% to £227,369.

Changes by type

Whilst the average price for all property types increased during 2015, semi-detached houses showed the largest rise in values, up by 3.4% to £157,995. That said, detached properties had the highest average price of £249,921.

Flats have the largest volume share, with 36.2% of the market as a whole. The lowest share is taken by semi-detached homes, which take up 18.4%.

Statistics from the Registers for Scotland report cover all residential sales in the country between £20,000 and £1m, including those that did not include a mortgage.

Property sales in Scotland soared during 2015

Property sales in Scotland soared during 2015

Contribution

Registers of Scotland’s director of commercial services, Kenny Crawford, said, ‘the total value of the residential property market continues to make a significant contribution to the Scottish economy.’[1]

‘‘In 2015, the market totalled £16.5 billion, an increase of 8.2 per cent on the previous year. The Edinburgh property market represented over 17.2% of this figure, bringing in over £2.8 billion to the Scottish economy. This is significantly larger than the next biggest property market, Glasgow, with 9.8% of the market at £1.6 billion,’ Crawford added.[1]

[1] http://www.propertywire.com/news/europe/scotland-property-sales-record-2016031111661.html

Scottish house prices and sales up in June

Published On: August 19, 2015 at 12:24 pm

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Scottish house prices rose in June, with the average price of a property north of the border now £169,227, according to new index figures.

Data from the report by Your Move shows that sales rose by 25% month on month, with year-on-year prices increasing by 1.2%.[1]

Changes

There have been a number of changes in the property market during the last twelve months, including the introduction of the new Land and Buildings Transaction Tax in April.

After a surge in sales in the upper end of the market before the tax was introduced, sales tailed off soon afterwards. However, the latest figures show that the price revival in June was driven by a resurgence of sales for million pound plus properties.

A rise of 25% in home sales in comparison to May was the highest month-on-month growth since July 2014. By region, Glasgow saw the greatest increase in sales activity during the second quarter of the year, recording an increase of 18% year-on-year.

‘The calm annual house price change of 1.2% recorded in June 2015 belies tumultuous currents of activity beneath the surface,’ said Christine Campbell, Your Move managing director in Scotland. ‘The Scottish housing market has been buffeted around by taxation.’[1]

Improvement

Campbell pointed out that in 2014, there were on average 12 £1m plus properties sold north of the border. In June 2015 alone, there were 6, indicating a marked improvement in the sector in just one month.[1]

On the mainland, the largest monthly rises were recorded, unsurprisingly, by the two most expensive local authorities in Scotland. East Renfrewshire and East Dunbartonshire shows jumps of 26% and 21% respectively during the month.[1]

Campbell said that, ‘more generally, the LBTT front loaded sales into the start of the year and activity dragged its heels throughout April and May, with the general election adding to the dampening effect.’[1]

Scottish house prices and sales up in June

Scottish house prices and sales up in June

For example, in Aberdeen, sales of detached homes fell by 39% between March in April but in June, there was a 25% month-on-month rise. In Scotland overall, there were 9,265 sales during June, the most activity since July 2014 and during the second quarter of 2015, sales of flats saw a significant year-on-year rise of 7%.[1]

Affordable

Campbell feels that the improvement, ‘stems from the stamina of the first time buyer market, as this property type tends to be the most affordable for those getting their first footing on the property ladder. This is especially the case in cities and Glasgow and Edinburgh accounted for 45% of all Scottish flat sales during the second quarter of 2015.’[1]

She went on to say, ‘affordability is the biggest steer to Scottish housing market at the moment. At £200,000, the average price of a flat in Edinburgh is more than one and half times as much as the cost of the typical flat in Glasgow which stands at £120,000.’[1]

‘As a result, Glasgow has experienced the strongest jump in house purchases overall, with sales up 18% in the second quarter compared with the same period in 2014, while Edinburgh sales have seen just a 2% upswing over the same period.  Low interest rates, competitive mortgage deals, and higher average earnings have caused a swell of confidence and buyer demand, particularly in cheaper areas,’ she said, adding that a lack of supply will keep the market open to stronger price surges,’ Campbell concluded.[1]

[1] http://www.propertywire.com/news/europe/scotland-property-prices-sales-2015081910880.html

 

Scottish home prices remain steady

Published On: July 16, 2015 at 9:15 am

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A new report has indicated that the Scottish property market has remained steady, despite recent tax disruptions.

Data from Your Move has indicated that house prices north of the border are up 10.3% since May 2014. This represented twice the annual rate of growth recorded in England and Wales.

Stability

‘Two months into Scotland’s new transaction tax regime and the impact of the overhaul is still reverberating around the property market,’ said Christine Campbell, Your Move managing director in Scotland.’ Meanwhile a sweeping political transformation in May – both in Scotland and the rest of the UK – was a fresh source of uncertainty for those considering the best time to move home.  These winds of change have buffeted buyers and sellers, and it’s harder to make out the underlying course of the market as a result.’[1]

Campbell feels that, ‘the trends that can be gleaned are positive,’ and says with, ‘Scottish house prices up by more than ten per cent on an annual basis,’ the sentiment from buyers in their braches, ‘is upbeat as the stability of the housing recovery shines through.’[1]

She concedes that, ‘there is no denying that the recent tax turbulence has affected property prices in the shorter-term, with the latest monthly dip testament to further-shock-waves of the LBTT as the market continues to absorb the change. May’s monthly fall of 2.1% (equal to £4,000) is the largest backwards step we’ve experienced for nearly six years. However, this must be considered in the context of following an exceptional leap in March, when prices soared a record-breaking £16,000 as a result of frenetic movement at the top-end of the housing market, with 84 properties worth £1million or more changing hands before the stamp duty switchover.’[1]

High-end slip

Continuing, Campbell noted that since the new regime came into force, there has, ‘been only one million-pound home sold in Scotland in the past two months, which is reining back current measures of growth.’ She said that during May, ‘it was the most expensive parts of Scotland that saw average property prices slip backwards.’ House prices in Edinburgh were found to have slipped 5.7% since April, with East Lothian experiencing a drop of 11.2% during May.[1]

More positively, Campbell feels that the, ‘downwards correction we’re seeing in May has not undone the progress that’s been made so far this year-in the midst of all this disruption, Scottish house prices have risen by 7.6% since January. In another sign of the strength at the core of the housing recovery, May also marks a considerable breakthrough for our second city – with average house prices in Glasgow finally exceeding their 2007 housing boom high, and reaching a new peak of £146,286 in May 2015.

Scottish home prices remain steady

Scottish home prices remain steady

Tenacious demand for homes has been the key driver propelling prices out of the shadow of the financial crisis, and Glasgow has seen the most property sales in Scotland in 2015 so far – accounting for 12.5% of all activity in the housing market. The average price for a flat in the city has risen from £105,000 in 2014 to £120,000 in 2015.’[1]

Concluding, Campbell said, ‘There was a 15% spike in home sales in the immediate run-up to the introduction of the new tax. In contrast, there were just 7,386 sales in May 2015, 10% lower than April levels as activity returns to normal, and starts to iron out the recent discrepancies.’ She is of the opinion that, ‘with the vast majority of Scottish homebuyers likely to be budgeting less than £254,000-and so benefiting from reduced transaction costs under the new banding-activity should soon settle back into its natural stride once more.’[1]

[1] http://www.propertyreporter.co.uk/property/scottish-house-prices-remain-resilient.html

 

 

Average property prices fall in Scotland

Published On: June 18, 2015 at 10:15 am

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The latest Your Move/Acadata monthly index has indicated that property prices in Scotland fell at their greatest rate since 2009, but experts feel that new property tax bands are the contributing factor.

Dip

Property prices north of the border fell by 1.6% in April. This resulted in £3,000 being shaved off the average property price, which now stands at £184,970. More positively, prices are still 14.6% greater than they were at the same period last year, with sales also up 4% annually. What’s more, sales climbed by 18% on a month-by-month basis.[1]

Despite the fall in average values, the index suggests that a large part of this is down to the introduction of the Land and Buildings Transaction Tax. Introduced in April, this saw a number of transactions in the higher price brackets rushed through to avoid paying the increased tax.

It was reported that buyers urged through 83 sales over £1m during March, in comparison to the average monthly total of 12. 46 homes were sold in just 3 days, but no properties totaling £1m or above were sold in April.[2]

The largest drop in prices was recorded in East Lothian, where values dropped by 7.2%. However, significant rises were recorded in the islands of Orkney and the Shetlands, where prices rose by 9.1% and 4.4% respectively.[3]

Rearranging reforms

‘Reforming Scottish stamp duty was always going to ruffle a few feathers in the market,’ said Christine Campbell, Your Move managing director in Scotland. ‘After a spectacular 9.4% leap during March ahead of the Land and Buildings Transactions Tax, average Scottish house prices subsequently fell by the sharpest fall we’ve seen since March 2009, when the housing market was at the lowest ebb of the housing crisis.’[4]

She continued by saying that, ‘the Scottish housing market put on a high-octane performance in March, as high end buyers raced against the clock to snap up million-pound property before the higher rates of stamp duty came into play. This magnified the average price paid in March, but now the market is re-focusing.’[5]

Average property prices fall in Scotland

Average property prices fall in Scotland

Campbell also pointed out that, ‘with double-digit growth still pervading, the housing recovery doesn’t appear too shaken and this short-term hiccup has been concentrated in higher priced areas.’[6]

Sales

Data reveals that there were 8,203 house sales in Scotland during the month of April, with levels increasing from 2014. This is in contrast to England and Wales, where sales have been falling year-on-year during the last six-months.

Additionally, the research reveals that stamp duty changes have certainly increased the rate of purchasing in the first months of the year. There were 237 more homes sold in Edinburgh this year in comparison to last, with 96 of these transactions occurring in March, as people sought to beat the pre-tax deadline.[7]

Campbell noted that with the tax changes now in place, Scottish buyers building homes under £254,000 should benefit from the lower costs. She stated that, ‘the momentum in the market should continue into the summer, even if prices are reined in over the short term by a slower top end until they adjust to the new banding.’[8]

[1] http://www.propertywire.com/news/europe/scotland-house-price-index-2015061710640.html

 

 

Scottish Property Prices in Record Increase

Published On: April 23, 2015 at 9:05 am

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Recently released data has shown that Scottish property prices rose considerably during February.

Record

Latest figures from the Your Move Scotland house price index indicate that prices north of the border rose by 1.7% during February. This was the largest monthly increase since 2007 and left the average property price at a record high of £169,742.[1]

February’s report also indicated a 14% month-on-month increase in property prices, but the numbers were down 4% on the same month in 2014.

The figures also showed that annual property price growth in Scotland now stands at 6%, the strongest figure since 2010.[2]

Impressive

The records showed that Scottish property prices rose at a higher rate than in both England and Wales during February, where growth was only 0.4%. Christine Campbell, regional MD of Your Move, offered a reason for the record growth. Campbell said that, ‘the impressive rise in house prices in February has been influenced by the introduction of the new Land and Building Transaction Tax (LBTT) in April, as high end buyers sought to complete expensive purchases under the old stamp duty rates.’[3]

Pointing out that fifteen properties priced at £1m or over were sold during February, in comparison to six in January, Campbell believes that a number of people are making, ‘tactical tax considerations,’ which are likely to, ‘play a significant role in the months to come.’[4]

LBTT

The Land and Building Transaction Tax, effective from 1st April 2015, has seen properties valued at over £750,000 facing a 12% tax. Campbell believes that, ‘now that the LBTT has come into force, we expect to see a temporary drop-off in the number of properties sold above £750,000, now liable for the top rate of tax.’ This, Campbell said is, ‘similar to the impact we’re currently seeing in London among £2 million properties in light of December’s stamp duty changes.’[5]

Scottish Property Prices in record increase

Scottish Property Prices in record increase

 

Campbell also pointed out that the rise seen in February went against the seasonal norm, with a much larger rate of growth recorded than in previous years.

However, figures recording the previous three months indicate that all areas across Scotland have seen a year-on-year dip in completed home sales. Midlothian saw the sharpest decline of 31%. [6]

Artificial

Responding to the annual decline, Campbell said that,’ these year-on-year benchmarks have been artificially propped up,’ as a result of, ‘extraordinary headway in sales activity over 2014.’ Campbell also believes that with the housing market having, ‘an upcoming general election to contend with,’ this political uncertainty will reflect in lower sales both north and south of the border.[7]

Optimism

She went on to state that, ‘as soon as there is a stable government, there will be no reason to delay. Recent experience of their independence reminds us that a celebratory resurgence of activity after the vote is concluded will even out any deficit beforehand.’[8]

Citing measures such as, ‘the new , lower transaction tax for the majority under the LBTT and rock bottom interest rates on mortgages, Campbell is convinced that, ‘buyers’ prospects are already greatly boosted.’ The election result and subsequent, ‘political certainty will raise consumer confidence even further,’ she believes.[9]

[1-9] http://www.propertywire.com/news/europe/scotland-house-price-growth-2015042210420.html