Average Price of a Property in Scotland Up 2.9% on Previous Year
The latest publication of the monthly UK HPI shows that the average price of a property in Scotland in November 2018 was £150,638 – an increase of 2.9% on November in the previous year and a decrease of 0.7% when compared to the previous month. This compares to a UK average of £230,630, which was an increase of 2.8% on November in the previous year and a decrease of 0.1% when compared to the previous month.Average price increases were recorded in the majority (27) of local authorities in November 2018, when comparing prices with the previous year. The biggest price increases were in Midlothian, Highland and City of Edinburgh where average prices increased by 11.9% to £187,796, 9.5% to £170,923 and 9.3% to £266,985 respectively. The largest decrease was recorded in Aberdeen City, where average prices fell by 6.7% £154,550.
Positive Outlook for Scotland’s Residential Property Market
Scotland’s residential property market was buoyant in 2018, despite the UK’s uncertain economic and political climate, and in east central Scotland the year finished with a flourish – there was a significant upswing in the number of properties coming to market and property selling prices continued to increase.
The final three months of 2018 saw a 23.9% increase in the number of homes coming to market in east central Scotland compared to the same period last year, according to the ESPC. In Edinburgh there was a 14.7% increase in the number of homes coming to market. This increased supply of properties towards the end of 2018 is a good sign for those planning to purchase a home in the early months of 2019. The significant increase in the number of homes coming to market in the later months of 2018, coupled with strong demand, has also resulted in a 9.2% increase in the number of properties sold during this period compared to last year.
Steady increases in average selling prices are still evident in east central Scotland. Between October and December 2018, the average selling price rose by 4.4% to £244,437 compared to last year. In Edinburgh the average selling price rose by 5.7% to £267,249. During this period homes achieved 103.3% of their Home Report valuation on average, compared to 103.7% for the same period last year, and the median time to sell was 22 days compared to 20 days last year
Jamie Fraser-Davidson, Business Analyst at ESPC, said: “At the start of 2018, the east central Scotland property market was limited by the shortage of properties coming to market so it is encouraging to see a significant upswing in the number of new listings in the final few months of the year – this is a good sign for buyers. At the same time, average selling prices are continuing to rise at a steady pace which is positive news for sellers. Although it’s still unclear exactly what 2019 will bring in terms of changes to the UK housing market, particularly considering the uncertainty of Brexit, the east central Scotland property market ended 2018 in a strong position and appears set to face the challenges of the upcoming months.”
Increase in Mortgage Lending in the UK
Gross mortgage lending across the residential market in the UK was 4.7% higher in December 2018 than in the same month in the previous year, according to data from industry group UK Finance. It reached £21.1 billion in December and during 2018 as a whole it was £267.5 billion, some 3.8% higher than in 2017. The number of mortgages approved by the main high street banks in December 2018 was 2.4% lower than the same month the previous year. Approvals for home purchase were 5.3% higher, remortgage approvals were 5.8% lower and approvals for other secured borrowing were 18.9% lower.
From Our Point of View
We came back after the Christmas and New Year holidays expecting that it might take the property market some time to get back into full swing. It turns out that we could not have been more wrong!
In the first two weeks of January, we booked more viewing appointments for buyers than in any week of 2018. That’s in spite of our business being open between Christmas and New Year, so this wasn’t simply a backlog.
It seems that property sellers are coming out in force early in 2019 and our Valuation Team has been busy seeing all of our potential sellers as quickly as possible to give them the information that they need to make an informed decision about selling this year.
We’re delighted to have hired two new Valuers, one of them based full-time in Glasgow, to allow us to see more potential sellers, more quickly, and to help them to get the best price for their property sale in 2019.
In spite of the constant attention given to Brexit, we aren’t seeing it have any negative effect on the Scottish property market and we are looking forward to a fantastic year, helping as many property buyers and sellers through the estate agency and conveyancing parts of their selling and buying journeys.
We’re Here to Help
If you are thinking of selling your home or investment property, get in touch with us by calling 0345 646 0208 (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 instantly book a free valuation appointment online by following this link.
If you are looking to buy a property as a home or investment, please call 0345 646 0208 (Option 2) or email [email protected] and we will be happy to help.