19 Oct Scottish Property Market Autumn
As we enter the tail end of 2017, we have a look at how the Scottish property market has performed and recap the key facts. We also give a brief summary of emerging trends as we look ahead to 2018.
Despite the uncertainties around political and economic events, 2017 to date has shown positive growth in the Scottish property market, with the Aberdeen market also returning to growth after a despondent couple of years.
Average house prices along with the volume of transactions have both shown modest growth throughout 2017 across the whole of the Scotland, but particularly in the majority of local authority areas.
A shortage of homes for sale has kept house prices rising despite falling consumer incomes and political uncertainty, according to Nationwide.
Land and Building Transaction Tax (LBTT) continues to impact on activity at the top end of the market, but there has been a noticeable recovery in this market from the middle part of 2017.
The buy-to-let mortgage prisoners: New lending rules could see landlords with several properties unable to switch to cheaper loans.
New build activity did improve throughout 2017, though, overall housing delivery remains below the Government targets and projected need, especially in the cities.
2017 was expected to be a year of market consolidation as the decisions of 2016 were anticipated as casting their shadow over the economy and housing market this year. However, to date, the performance of the market has been pleasantly surprising and we expect this to continue over the rest of the year and into 2018.
- After subdued activity over 2016, 2017 to date has been brighter, with nearly all Scottish local authorities seeing a rise in market activity levels.
- LBTT has had an impact in suppressing activity at the upper levels of the market, but this market noticeably recovered from the middle part of this year, contributing to record LBTT revenues over the Summer.
- New lending rules could see landlords with several properties unable to switch to cheaper loans
- Commuter belt housing development is taking up the slack from under-delivering cities, with Scotland’s overall housing delivery figures still at a post-war low.
- The rental sector is experiencing challenges due to new legislation, but advertised rents continue to rise on the back of supply shortages, particularly in Edinburgh and Glasgow.
If you are thinking of selling your property this Autumn or need advice regarding a Home Report, give us a call on 0131 608 0175 or email us at email@example.com. We provide home reports across Scotland – including Edinburgh, Glasgow and Aberdeen – at a time that suits you