The outcome of this month’s Parliament vote on the Brexit deal may have an impact on the confidence of both sellers and buyers across the country but regardless of the vote, life goes on and people still need to move.
Last year saw a sharp increase in property values with an average increase of 5.8% across Scotland and in many areas well in excess of that – East Lothian 11.7%, West Dunbartonshire 11.9%. Overall house prices increased in 27 out of 32 local authorities. This has been caused by a shortage in supply with a 10% decrease in the number of properties coming to market. There have been a number of factors that have contributed to this:
- LBTT – Many would be sellers are staying put as the cost to move is now prohibitive, fuelling a shortage in property across all sectors.
- Due to the lack of supply there have been numerous competitive closing dates on properties. As a result large premiums have been achieved in excess of the home report figure. See chart below:
- Increase in premiums in city centre locations, fuelled by Air BNB / buy to let investors who see excellent yields compared with other parts of the UK.
Moving forward into 2019 we think that seller confidence and buyer demand will remain strong albeit not at the same pace as last year.
There will be more fixed price activity and realistic pricing, with agents having to work harder to justify their valuations.
Ultimately there is always an active property market, it’s just a matter of changing gears and adapting to the current conditions.
Our Property Department are expertly placed to assist you in your house sale or purchase. If you are considering a house move in 2019, contact us for a free no obligation property market appraisal.
The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.