Tag Archives: british
Sales up strongly in Scotland but prices down 8.4% year on year
Residential property sales in Scotland increased by 18.2% in the first quarter of 2016 compared to the same period a year ago, the latest official data shows. The figures from the Registers of Scotland also show that prices are down by 8.4% compared to the previous year, bringing the average price to £159,198. A total of 19,802 properties changed hands between January and March, the highest volume of sales for these months since 2007/2008 and the total value of sales across Scotland increased by 8.3% compared to the previous year to just over £3.15 billion. ‘We've seen a sustained increase in the volume of sales throughout the 2015/2016 financial year,’ said Registers of Scotland director of commercial services, Kenny Crawford. ‘This time last year, we saw a spike in house prices, with an increase in the number of high value property sales. By comparison, this year has seen an increase in the volume of lower value properties being sold, which may account for this year's lower average price. Future sales statistics will determine whether this is a one-off decrease, or whether this is a trend that will continue,’ he added. The city of Edinburgh was the largest market, with sales of over £554.6 million for the quarter, up 3.3 while Midlothian recorded the highest increase in value, with sales of over £63 million, an increase of 56.5% compared with the same quarter last year. Aberdeen City showed the largest decrease in market value, down 22.7% to £162.7 million. The highest percentage rise in the volume of sales was in Midlothian, with an annual increase of 48% and Edinburgh recorded the highest volume with growth of 22.4% compared to the same quarter the previous year. The largest percentage fall in volume of sales was in East Renfrewshire, down 14.5%. East Renfrewshire also recorded the highest average property price at £222,303 but this was down 7.9% on last year. The largest percentage rise was seen in North Lanarkshire, where the average property price rose 6.6% to £116,738. The highest percentage fall was recorded in East Lothian, with an average price of £207,276, a fall of 16.5% on last year. All property types showed an increase in sales volumes, with flats showing the biggest increase at 24.2%. They also all showed a decrease in average price this quarter, with detached properties showing the biggest decrease, down 11.6% to £236,249. Semi-detached, terraced, and flatted properties showed price decreases of 8.5%, 10.5% and 7.4% respectively. According to Michelle Grant, investment director at Grant Property, the increase in volume sales reflects what the firm is seeing on the ground. ‘Our buyers are experiencing high levels of competition when trying to secure prime city centre properties on behalf of investors,’ she said. ‘In Glasgow we are bidding against on average eight people for each property and in Edinburgh it can be as high as 20. We have also recently seen properties selling for as much as 15% over… Continue reading
House prices fall in Scotland for first time in eight months
Scotland has seen its first dip in house prices for eight months with the latest index showing a fall of 1% month on month despite a surge in sales. Prices are also down 2.1% year on year, taking the average price of a home to £168,020, according to the latest Your Move monthly index. It is the first monthly fall since June 2015 and comes at the same time that homes sales registered their strongest February since 2008 with growth of 19% year on year. It suggest that the growth in sales is down to added demand from buy to let investors ahead of the April stamp duty change and adds the hesitation at the higher end of market ahead of the upcoming elections could be having an effect. Edinburgh has been knocked off the top spot for price growth and Midlothian was the only area to break a record for property values in February, surpassing its pre-crisis peak. According to Christine Campbell, Your Move managing director in Scotland, the sudden dip in prices will be a welcome reprieve for those attempting to get their foot on the property ladder. ‘House prices are also down compared to the same time last year, but this tells us more about the turbulence caused by the introduction of the Land and Building Transaction Tax (LBTT) at the beginning of 2015, than anything happening in the market right now,’ she explained. She pointed out that another key barometer is pointing to a lot of positivity in the market and that is that property sales in Scotland have flouted seasonal trends to jump 10% month on month. ‘This impetus also meant that purchase activity was concentrated at the lower end of the market with aspiring landlords snapping up affordable options. We can see evidence of this in Edinburgh and Glasgow, where sales of flats, a popular investment choice, have soared in the three months to February 2016,’ said Campbell. ‘But at the same time, there has been a slowdown at the top end of the market due to uncertainty surrounding the upcoming Scottish Parliament election and European Union referendum, particularly among foreign buyers. This imbalance between the volume of cheaper and more expensive property sales is skewing the overall measure of price growth, and tipping it downwards,’ she added. Campbell also pointed out that a hesitation at the prime levels of the market has hit average house prices in Edinburgh, knocking Scotland’s capital off the top spot and into second place in the ranking of areas by property value. The index shows that Edinburgh’s house prices have declined 3.2% month on month due to a drop off in high value home sales, with foreign buyers possibly delaying purchases until after the EU referendum. Meanwhile, East Lothian has seen home values up 9.1% or £19,548 from January and in Midlothian house prices have set a new record. The typical home in the area is now worth £198,977,… Continue reading
Airbnb popularity is a growing threat to residential landlords
The Airbnb phenomenon that is soaring in popularity is a growing issue for private sector landlords as tenants embrace the trend without checking if their tenancy allows them to do so. According to the UK’s tenant eviction firm Landlord Action the number of cases where tenants have sub-let properties without their landlord’s permission has trebled. It point out that aside from breach of tenancy agreement and additional wear and tear to the property, landlords are left exposed to being in breach of their mortgage terms and buildings insurance. The share economy is a growing phenomenon, with models such as Airbnb giving people a platform to view themselves as a business. But according to Landlord Action founder Paul Shamplina it is also enabling those who do not have the right to do so, from profiting from someone else’s asset. An example is Joy Philips, a landlord who decided to let out her West London home so she could afford to take time out to volunteer at an orphanage in Africa. She thought she had found the perfect tenant in a young doctor who wanted her home for a three year lease. It all seemed very promising until she started receiving emails and calls from her neighbours complaining about the volume of people coming and going at her house. Joy was shocked to discover that her house was not being used as a home for the young doctor, but being rented out room by room as a boutique hotel on the Airbnb website. Making thousands over the rent being paid to Joy, her tenant was breaking the no sub-letting clause in her contract. By having so many people in the house, Joy’s home insurance was also at risk of being void. She was forced to give up her volunteer work in Africa to return to the UK and got in touch with Landlord Action in the hope of getting her property back. ‘We have had concerns for some time now regarding the protection of properties which are being uploaded and offered as holiday lets via Airbnb. We continue to receive a growing number of instructions from landlords who want us to start possession proceedings against tenants who have sublet their property via Airbnb without consent,’ said Shamplina. ‘Whilst Airbnb do provide a level of protection for hosts, naturally certain conditions and limitations do apply. My concern is that there is not enough safeguarding with regards to obtaining proof from the individual who is advertising the property that they are the legitimate owner. Or, if they are a tenant, that they have consent from their landlord to rent out the property in this way,’ he pointed out. ‘We have seen cases where, quite clearly, tenants are making thousands of pounds from exploiting the service to a high volume of holiday makers on a weekly basis. In a recent case, it… Continue reading
