Tag Archives: crisis
Difference between asking and selling prices in Scotland narrows
Average asking prices across Scotland increased by £2,000 and the average selling price increased by over £8,500 to £162,122 in the second quarter of the year, narrowing the gap between the two to less than 1%. Flats continue to sell above their asking price typically selling for around £18,000 more, up from £11,000 last quarter, according to the latest index from s1homes. This means that the average selling price for flats increased by over £8,500 to £126,844 while the average asking price rose by around £1,500 to £108,472. Both the average asking and average selling price of terraced houses increased this quarter, up by £4,000 and £9,000 respectively. Terraced houses on average sell for £11,000 more than their asking price up from £7,000 in the previous quarter. This quarter the average selling price for a terraced property has increased and is once again higher than the average asking price. It increased by over £8,000 to £150,458. There is less than £1,000 of a difference between the average asking price and average selling price this quarter. Detached houses are the only property type where a Reality Gap exists and this has remained at 13% for a second consecutive quarter as both the average asking and selling prices increased. Typically detached houses sell for £37,000 less than their asking price. A breakdown of the figures shows that in Argyll and Bute the Reality Gap has narrowed significantly from £47,000 to £28,000 driven by the increase in the average selling price. The average selling price increased by £21,000 to £156,495. In Ayrshire the average selling price has increased by £10,000, narrowing the Reality Gap to £21,000, down from £31,000 last quarter. For a second consecutive quarter the average asking price remains relatively static at £146,336. The Reality Gap has narrowed in East Lothian where on average properties are selling for £27,000 below their asking price compared with almost £36,000 in the previous quarter. The average selling price has increased by £15,000 to £209,349. In East Renfrewshire, the Reality Gap has narrowed to 6.5% with properties on average selling for £16,000 less than their asking price. Both the average asking price and average selling price have increased, rising by £9,000 and £16,500 respectively. In Edinburgh, properties are once again typically selling for more than their asking price. This quarter both the average asking price and average selling price increased, the average asking price by £6,000 and the average selling price by £12,500. In Falkirk, the Reality Gap has narrowed from £24,000 to £15,000 despite the average asking price increasing by £4,500 as the average selling price increased by over £13,500. The Reality Gap in Fife has widened slightly this quarter with properties typically selling for around £11,000 less than their asking price. The average asking price and average selling price this quarter both increased by around £2,000. In Glasgow/Dunbartonshire both the average asking price and average selling price have increased by £3,500 and £3,000 respectively. The Reality Gap remained at 5% with properties typically selling for almost… Continue reading
Scots divided over effect of independence on property prices, poll shows
Opinion in Scotland over whether or not house prices will fall if there is a Yes vote for independence is divided, a new poll shows. Almost a third of people think house prices in Scotland will fall if the country becomes independent while about the same number believe prices will rise. The crucial vote is on Thursday. Overall the survey by s1homes shows that 32% of people believe independence could cause the value of their house to fall while 31% it will lead to a price increase. A further 24% said they did not know while 13% said they did not believe Scotland would vote to leave the union. Almost half of those surveyed, some 46% said they think that independence would make it harder to get a mortgage while 19% said it would be easier. The remaining 35% said it would be no different. Across almost all regions and age groups the consensus is that getting a mortgage would be harder in the eventuality of independence. The only segments to disagree were those aged 55 to 64 who believe that getting a mortgage would be no different and those under 18 who are split evenly between believing that getting a mortgage would be easier and believing it would be harder. Those currently living outside of Scotland are the least likely to buy property in Scotland until after the referendum, 50% said the impending referendum would make them less likely to buy or sell at the moment. The North East of Scotland followed with 35% of respondents less likely to buy or sell until after the referendum. Those aged 65 and over feel strongest that independence would result in the value of their home falling while those under 18, followed by those aged 18 to 24, feel strongest that property values would increase. More men than women believe that independence would impact on the value of their home, while more women admitted to not knowing one way or the other. Despite uncertainty over the result of the referendum and the potential rise or fall in property prices, 59% said that the referendum has no influence on their decision to buy or sell at the moment. Ewan Stark, s1 managing director, believes that the survey shows a ‘feeling of trepidation’ among Scots over the future of mortgages and interest rates. ‘The prospect of independence continues to divide the country and the results of our survey reveal that there is little agreement on what independence would mean for Scotland's property market either,’ he said. Meanwhile, a survey by rental firm Citylets found that 58% of private renters who have made up their mind on which way they are going to vote, support independence. Continue reading
London and South East skewing average house price figures, latest index shows
The average property price in England and Wales has reached £274,302 but this drops to £185,496 if London and the South East are removed, the latest monthly index shows. This means that these two regions are skewing average house prices by a record £89,000, the biggest disparity since 1995, according to data from the LSL Property Services index. It is due to cooling house prices in some regions and the figures shows that the slowdown outside of London and the South East on an annual basis has dropped to 4.3%. This contrasts with average house price growth of 10.7% in the past year across all of England. On a monthly basis prices have increased by 0.9%, according to the data from the August index report. According to Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, a game of two halves is being played out in the UK property market. ‘In terms of average house price growth, a gap has developed between the South East corner and the rest of the country. If we exclude the key players of London and the South East from the game, a whole different playing field is revealed,’ he said. ‘House prices across the remaining parts of England and Wales have only increased 4.3% in the past year, or less than half of the overall measure of 10.7% when we include London and the South East. In absolute terms the difference would seem to add £88,806 to the average price tag for a home across England and Wales, the highest absolute difference since 1995,’ he explained. ‘This obscures cooler prices in much of the country. Further afield, it is critical that support mechanisms like Help to Buy aren’t dismantled. In July, house price growth slowed across all regions except for London, the South East and East Anglia. While these three regions continue to set new house price highs, the rest of the country is nowhere near these levels of growth,’ he added. Sexton also pointed out that compared to the nadir of 2008/2012, activity in the housing market has improved, but is not completely out of the woods yet, and still needs to recapture some of the vitality of its pre-recession health. ‘There is also much more to be said beyond the headlines for London. The annual rate of growth in London house prices is the fastest witnessed since 2000. Most recently we’re seeing asking prices in the capital start to be reined in, which will apply the brakes on annual house price inflation as the market steadies,’ said Sexton. ‘What’s happening in London may be eye-catching, but it is akin to looking through a kaleidoscope and skews any view of the current total housing landscape. Peeling back the regional layers gives a much more informed view of the core reality of the current housing market,’ he added. ‘With evidence of London starting to cool off after strong growth earlier in the year, it is critical that the underlying momentum… Continue reading
