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Scotland sees 9% quarterly rise in £1 million plus properties
The number of £1 million plus residential property sales in Scotland rose by 9% quarter on quarter in the final three months of last year according to a new analysis. A report from Knight Frank based on official data shows that the number of sales in this sector increased as the year progressed, with a sharp jump in sales during the second half of the year. Indeed, the total number of sales completed in the final three months of 2014 was 88% higher than the period between April and June and more than double the number recorded over the opening three months of the year. During the final quarter of 2014, £1 million plus sales took place in 11 different local authorities, led by Edinburgh, which accounted for 47% of the total sales over the three month period. This was followed by East Dunbartonshire with 13% and Fife with 11% while over the full 12 months of the year, Edinburgh accounted for 48% of all £1 million plus residential sales in Scotland, followed by Aberdeen City at 17%. According to Oliver Knight, of Knight Frank residential research team, the rise in high value property sales last year can be attributed to two factors, both of which have played a key part in boosting transaction volumes at this level of the market. Firstly, the market has responded to the certainty provided by the result of the independence referendum. ‘After months of doubt about the outcome, buyers felt more secure about making a decision to move house or purchase a property,’ he explained. Secondly, the announcement of the proposed Land and Building Transaction Tax (LBTT) rates in October shed light on how purchase taxes would rise in April 2015, especially for more expensive properties. ‘Buyers now have a window when purchase costs are lower, especially given the changes made to stamp duty at the Autumn Statement in December, and many are taking advantage. From April this year, when the new LBTT rules come into force, a buyer of a property valued at £1 million will pay nearly £35,000 more in purchase taxes,’ said Knight. ‘We expect that the extra impetus for buyers of property valued above £1 million to complete sales before the new LBTT levy comes into force in April will mean the number of high value property sales continues to rise for several months. Even with the new higher purchase taxes, the relative cost of property in Scotland compared to London and the South of England means there is still a large effective discount for buyers making the move north,’ he added. Ran Morgan, head of Scotland residential at Knight Frank, pointed out that the appetite for prime property, certainly in Scottish cities, remains high. Edinburgh continues to lead the way with the highest number of sales, followed by Aberdeen. ‘Despite forthcoming higher levels of tax, Scotland still offers excellent value compared with London and the south. Because of this we expect the… Continue reading
Rents in Scotland up 1.3% in last 12 months, latest index shows
Residential rents in Scotland have increased by 1.3% in the last 12 months, just half the pace of rent growth in England and Wales, according to the latest sector index. It means that average rents stand at £536 per month following a 0.1% fall in January however rents in the east of Scotland reached a new record high in January after increasing 3.2% year on year. The Scotland Buy to Let Index from Your Move, one of Scotland’s largest lettings agent networks, also shows that despite a slight monthly improvement, tenant financed are worse than a year ago with 7.1% late paying their rent. The average monthly rent in Scotland is now 5.3% higher than at the time of the previous elections to the Scottish Parliament in May 2011. By contrast, the average residential rent across England and Wales has climbed 9.6% since May 2011, according to the index. Also, rents in England and Wales have risen 2.8% year on year. Scottish tenants are having a much smoother ride than their counterparts south of the border, with rental prices in Scotland climbing at a considerably slower pace, according to Brian Moran, area lettings director at Your Move. ‘Despite snowballing demand for homes to let, the private rented sector has managed to shelter tenants from the worst extremes of rent inflation, and rents have navigated an affordable route broadly trailing inflation,’ he said. But he pointed out that the overall story since the previous election papers over the different chapters we’ve experienced within this parliament. Scottish rents were largely on pause throughout 2011 and 2012, and it was the abolition of tenancy fees in November 2012 which jolted to life a sudden uptick in rents, as costs were recouped other ways. He believes that the majority of the rent growth falls in the last two years, and the tempo is just easing back into a more organic swing. ‘Housing is a policy area that impacts every one of us, and ahead of the general election tenants will have their ears on the ground to listen out for any rumbles of further changes to lettings legislation that might impact the sector. Investment in homes to let needs to keep pace with demand, and landlord confidence is an essential ointment to soothe the pains of the current housing shortage, and make rent rises an easier pill to swallow for tenants,’ added Moran. The index also shows that in the past year, rents have risen in three out of five regions of Scotland. Rents in Edinburgh and the Lothians have increased nearly three times as fast as across the rest of the country, jumping 3.8% in the 12 months to January 2015, compared to a 1.3% annual rise for all of Scotland. The East of Scotland has seen the second strongest annual rent growth, with a 3.2% year on year increase and in Glasgow and Clyde there was a 1.3% annual rise in average rents. In two regions, average… Continue reading
Confidence in property market reaches three year high in UK
Confidence in the UK property market has reached a three year high, according to new research from Clydesdale and Yorkshire Banks. Almost a quarter of people plan to change their current property either by extending or carrying out home improvements, the research found. A further 14% said they want to sell their house in the coming year. Finances are also high on the agenda with 11% planning to either pay off their mortgage, make overpayments or re-mortgage in the coming 12 months. The results, which show a consistently improving picture in the three years since homeowners were first asked about confidence levels, were revealed in the latest Annual Housebuyers Survey by the Banks. The survey supports the latest findings from the Council of Mortgage Lenders which reported that 2014 lending levels were the highest since 2007. Among those surveyed by the Banks in 2013, 62% of people said they planned to simply stay in their current home. The figure dropped to 58% a year later and dipped by a further 17% to 41% in 2015. Of those planning a move in the next 12 months, Londoners are most likely to move with 22% putting up a For Sale sign. Within that group, some 8% of Londoners plan to move up the property ladder, a further 8% have aspirations to relocate and 6% hope to downsize. In contrast only 10% in Scotland and 8% of those in Yorkshire plan to move in 2015. The optimism can also be seen with 44% expecting the value of their home to increase, while 54% think it will remain the same. Men are more optimistic about an increase with half of those surveyed anticipating an increase in value compared to 38% of women. Of those who believe the value of their home will increase the main reason is the increase in property prices in their local area, as well as an upturn in demand. Confidence is at its highest in London where 64% believe their property will increase in value in 2015 in sharp contrast to Wales where just less than a quarter, 24%, share a similar view. ‘We have seen optimism returning to the property market over the last few years and this seems to be growing with more people planning house changes whether it is to move, make home improvements, pay off their mortgage or even help a family member to get onto the property ladder,’ said Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network. ‘Whatever the circumstances Clydesdale and Yorkshire Banks have a range of products to suit different needs and budgets and to help make the UK's property aspirations for 2015 a reality,’ he added. Continue reading
