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Home prices and sales up in Scotland after property tax blip
House prices in Scotland increased by 2.6% in June, taking the average price to £169,227, according to the latest index figures, with sales up 25% month on month. It means that year on year prices have increased by 1.2% over a period that have seen a number of changes in the property market including the introduction of the new Land and Buildings Transaction Tax (LBTT) tax earlier this year in April. There was a flurry of sales at the upper end of the market before the tax was introduced and a dearth of sales in this sector afterwards but the Your Move index shows that June’s price growth was driven by a revival in million pound plus sales. The data also shows that home sales surged 25% in June compared with May, reaching the highest monthly total since July 2014. Glasgow saw the strongest jump in sales activity in the second quarter, up 18% in the past year on back of increased demand for flats. ‘The calm annual house price change of 1.2% recorded in June 2015 belies tumultuous currents of activity beneath the surface. The Scottish housing market has been buffeted around by taxation,’ said Christine Campbell, Your Move managing director in Scotland. She pointed out that on average in 2014, there were 12 £1million plus properties sold in Scotland during a month, but in June 2015 there were six, signalling an improvement in this sector of the market in just one month. On the mainland the biggest monthly rises were recorded by the two most expensive local authorities across Scotland with properties in East Renfrewshire and East Dunbartonshire experiencing price jumps of 26% and 21% respectively in June. ‘More generally, the LBTT front loaded sales into the start of the year, and activity dragged its heels throughout April and May, with the general election adding to the dampening effect,’ added Campbell. In Aberdeen, for example, sales of detached homes fell 39% between March and April. But June saw a 25% month on month leap in home sales, higher than what would typically be expected for this time of year, and 5% up on June 2014. Overall, Scotland saw 9,265 home sales during the month, the most activity since July 2014 and during the second quarter of 2015 flats have seen the most significant year on year increase in sales, up 7%. ‘This stems from the stamina of the first time buyer market, as this property type tends to be the most affordable for those getting their first footing on the property ladder. This is especially the case in cities, and Glasgow and Edinburgh accounted for 45% of all Scottish flat sales during the second quarter of 2015,’ said Campbell. ‘But affordability is the biggest steer to Scottish housing market at the moment. At £200,000, the average price of a flat in Edinburgh is more than one and half times as much as the cost of the… Continue reading
Quarter of UK house hunters take less than a week to find the right property
It seems that the old adage love at first sight applies to the UK property market with new research showing that almost a quarter of home seekers take less than a week to find a new place to live. Some 17% visit only one property when looking for a new house, 25% need to see their future home only once and over two thirds know instantly or by the end of the first visit that they want to move in. The research from mortgage provider Ocean Finance also shows that a third of house hunters spend almost three months browsing the property market, looking at online services such as Zoopla or Rightmove, contacting estate agents and organising viewings. When asked how many times they visited the property they liked best, some 60% of home owners to be admitted they need to see their future homes two to three times before moving in, although over a quarter visit their chosen property only once. Over two thirds of home buyers know instantly or by the end of the first viewing that they want to move in but the research also shows that small things can put buyers off with the biggest one traffic noise. The majority of those questioned won’t buy a house on a main road. A lack of natural light or an electricity pylon around the corner can also make a house unattractive for many people. No local shops or supermarkets can let the property down, as well as little or no storage in the house. Home seekers are also put off by a property that is too far from public transport or with an untidy or small garden. People rarely enjoy living above a take away or chip shop, as strong food smells are another reason for turning down a house however, people can live with coloured bathroom suites and without local restaurants and pubs. Continue reading
New land reform bill in Scotland too vague and timetable too tight, says RICS
The New Land Reform Bill in Scotland is set to have a substantial impact on the country’s land and property markets but it is too vague, subjective and inconclusive, according to the Royal Institution of Chartered Surveyors. RICS is urging the Scottish Government to consider undertaking a full impact assessment before any of the provisions are implemented and to introduce more clarity regarding a number of its parts and provisions. While the organisation is ‘fully supportive’ of the Scottish government’s aims to modernise and rejuvenate the rural landscape, it also believes that the current timescale for reform is too tight and therefore will be dependent on regulations which will be deduced after the passing of the Bill. There is also concern about the cessation of sporting estate tax relief. The Bill’s Policy Memorandum states that many small scale shootings would be expected to eligible for rates relief under the existing Small Business Bonus Scheme. RICS believes that research into how many estates will, and how many will not, benefit from rates relief needs to be undertaken before this provision is taken forward. Furthermore, it points out that the Scottish government has, thus far, not indicated whether the Small Business Bonus Scheme (SBBS) will endure beyond until 2016/2017, the proposed date where business rates exemptions will cease. ‘We believe it would be prudent of the government to inform the sector of its plans for the future of SBBS one way or another,’ said Sarah Speirs, director Scotland of RICS. ‘Whilst RICS welcomes a Land Rights and Responsibilities Statement (LRRS), as it will provide an indication of legislative travel, we do not agree that it should be a statutory requirement to be updated every five years, as currently specified,’ she added. Speirs explained that regular and changeable legislative modifications do not create favourable conditions for property and land markets and these markets require consistency to reach the necessary degree of stability to create confidence. ‘As such, RICS believes a balance needs to be struck between the land reform process and the establishment of stable, consistent legislative and economic conditions. Removing the statutory requirement for a review of the statement is one way of creating these conditions. Sarah on the proposal to create a Scottish Land Commission,’ she said. ‘we welcome the provision to establish a Scottish Land Commission, but still believe there would be merit in having separate Land Commission and Tenant Farming Commission office to ensure transparency,’ she pointed out. ‘Whilst the Commission’s work may result in increased costs to the public purse, the potential outcomes of the Commission’s research, evidence gathering and positive impact on land, should it follow the remit outlined above, should outweigh the costs. It is imperative that all work undertaken by the Commission is open, transparent and accessible to the Scottish public,’ she added. Agricultural holdings account for a substantial quantity, almost half, of the Land Reform Bill. RICS is concerned that agricultural holdings is too substantive an issue to be… Continue reading
