Property Prices Continue to Climb Across Scotland
The latest figures released in October 2017 by Registers by Scotland indicate that the average price of a property in Scotland for the month of August 2017 was £146,354, representing an increase of 3.9% on August of the previous year. This represents a decrease of 0.5%, however, when compared with July 2017.
Commenting on the annual increase, Registers of Scotland’s Registration and Transformation Director Charles Keegan said, “Average prices in Scotland also continued their upward trend in August with an increase of 3.9% when compared to August 2016. Average prices have been steadily increasing each month since March 2016, when compared with the same month of the previous year.”
Comparing this to the UK House Price Index (UK HPI), the increase in the average property price across the UK, from August 2016 to August 2017, was 5% with a monthly increase of 0.5% on July 2017 meaning that Scotland’s house price growth is lagging slightly behind the rest of the UK.
Gulf Between Supply and Demand Remains
Figures released by the ESPC in October 2017 indicated that between July and September 2017, the number of properties sold in East Central Scotland increased by 4.7% when compared to the same period the previous year.
In the same period, the number of properties coming to the market decreased by 0.5% annually.
Commenting on these figures, ESPC’s Business Analyst, Maria Botha-Lopez said:
“We have seen an increase of 4.7% in the number of homes sold in east central Scotland between July and September 2017, continuing the recovery of year-on-year increases in sales volumes. However, the number of new homes brought to market between the months of July and September decreased by 0.5%, after a promising sign of recovery over the last couple of months, and it is this lack of availability of properties to buy that is putting demand on the market and resulting in these increases in average selling prices.
“With 89.1% of properties listed between July and September 2017 being marketed as ‘Offers Over’, this also indicates how strong the market is for the seller, where their solicitors are confident that they will achieve over the asking price.”
The trends indicated by the figures from Registers of Scotland and ESPC are in line with what we have seen at MOV8 in the past few weeks. Demand continues to be strong, with the number of sales continuing to outstrip the number of new properties coming to the market. In recent weeks, however, we have seen an increase in the proportion of properties coming to the market versus the number selling. This is welcome news for home buyers and potential sellers as many of these potential sellers have been holding-off putting their own properties on the market until they have found a property to buy.
Further Indication of an Interest Rate Rise Before the End of Year
The Office of National Statistics (ONS) released figures in October showing that the Gross Domestic Product (GDP) rose by 0.4% in the third quarter of 2017, compared to 0.3% in each of 2017’s first quarters.
This has increased speculation that the Bank of England’s Monetary Policy Committee (MPC) will raise interest rates when it meets on 2 November 2017.
The nine member MPC voted by a margin of 7-2 to keep rates on hold at the last meeting on 14 September 2017. However, it also stated that, unless the economy showed a major deterioration, it would raise rates ‘over coming months’.
Given that the latest ONS reports are showing growth, UK economist Ruth Gregory from Capital Economics, said the figures, “have probably sealed the deal on an interest rate”.
The indications from the financial markets are that the rate increase is likely to be 0.25%, bringing the base rate to 0.5%. If it happens, this will be the first rate rise since 5 July 2007.
We’re Here to Help
If you are thinking of selling your home or investment property in 2017, please do get in touch with us by calling 0131 202 5444 (Option 1) or by emailing [email protected] to organise a free valuation of your home or to get a full, transparent breakdown of the costs of selling your home.
You can also now instantly book a free valuation appointment, online, by following this link.
For more tips about preparing for a property valuation, you can also check out our YouTube video,Getting the Best Possible Property Valuation.