20 Jul Interest Rates Remain Unchanged – Confidence Boost for Scottish Property Market
As the pound value decreased immediately after the referendum result on June 24th, the ESPC revealed that there was a significant decline in the number of property brought to market, and therefore home report requests. The Home Report is the first step a buyer takes before putting their property up for sale.
Gladly, this panicked reaction seems to have been very short lived as the people of Britain absorbed the shocking outcome of the vote. In the first week of July, already the market has seen a recovery in the numbers of property going onto the market.
However, we should also bear in mind that there usually tends to be a slight decrease in the housing marketing over the summer period as people are away on summer breaks, especially families with children who have around seven weeks off school.
Over the past three months, in the lead up to the EU referendum, recorded sales volumes across east central Scotland were down by nearly 6% compared to the same period the previous year.
Despite a decrease in the number of properties sold year on year, average house prices actually increased by 6.3% year on year with the avg selling time 43% faster compared with the same three-month period the previous year. This is extremely encouraging and highlights that there is strong confidence in the Scottish property market, encouraged by the shortage of properties for sale.
As reported in ESPC’s last month’s house price report, two-bedroom flats in Portobello and Joppa are in high demand, reporting a 30% year-on-year increase in average selling prices. The average selling price of three bedroom homes in Liberton and Gilmerton have increased by 23.2%, while one bedroom flats in the Leith area are continuing to see strong growth.
It is still too soon to report what the Scottish housing market landscape will look like post-Brexit, and immediate feelings amongst property experts seems to be to ‘wait and see’ or ‘wait for the dust to settle before proceeding’ for those who were not already in the middle of a property transaction. However, there have been very few reports of buyers or sellers pulling out of sales, with the majority proceeding as planned.
It is difficult to distinguish what proportion of decreases seen are related to the general supply shortage trend or a natural caution towards political uncertainty. The second homes tax that was introduced in April could also have an effect, as home buyers purchasing a second home would have to think about raising that extra 3% to add onto the purchase of the property.
The fundamentals haven’t changed and with housing being a necessity and mortgage availability seemingly unhampered, buyer demand is still there.
If you would like further information on getting your property on the market or would like a home report carried out at a time to suit, call us on 0131 608 0175 or drop us an email at firstname.lastname@example.org