The Registrars of Scotland have just released their full official report of data collected on the Scottish housing market for 2012. The general overview is that there has been little change in the Scottish housing market. Prices are down a little by 1%, there are a few more transactions than 2011 and the total value of property sold in 2012 is up by 3% on the year before.
However, there are massive regional differences. A few places have seen the total value of property sold increase by more than 30%, while others have seen a 16% decrease.
There are constantly conflicting reports on whether the property market is improving, getting worse or just still idling along with no real change. Many have put their life on hold for the last 5 years hoping for some recovery in the property market so they can sell and move on or upgrade, while many first time buyers continue to struggle to save for a deposit and to get on the housing ladder.
Looking at Edinburgh in more detail, the value of property sold across all three price bands (100,000 to 250,000, 250 - 500,000 and above 500,000) dropped by a staggering 60 to 70% between 2008 and 2009 and has not picked up much since. Prices remain at 2008 levels, although houses in the lowest price bracket have taken the worse hit, presumably as these are targeted at first time buyers, who struggle to save a deposit or successfully apply for a mortgage. There has been the most transactions in the higher price bracket.
The most transactions take place in the summer and so anyone looking to take advantage of this peak in house sales, needs to ensure that their property is made ready to sell in the spring and get it on the market early summer.
Since 2009 things have started to improve but very slowly and 2012 saw the highest number of first time buyers since the recession started. Although it is still a very tough time for new buyers and the 20% deposit needed to achieve a mortgage is a definite barrier. There are now more 90% mortgages available for Scottish first time buyers and new Government backed schemes are slowly starting to take effect. Lenders are also starting to make new products available to first time buyers with new initiatives such as the Lloyds Lend-A-Hand mortgage scheme and the Nationwide Save-to-Buy scheme. Lloyds have said they will make 6.5 billion worth of funds available for first time buyers from 2013.
Agents are reporting an increase in enquiries by potential sellers, and in some cases enquiries are up by 40%. They are also reporting more viewings and well located and reasonably priced properties are achieving interest from the market and quicker sales times.
The conclusion has to be that the worst is over and while it will be a slow and steady recovery, the property market in Scotland is starting to show signs of improvement.
However, there are massive regional differences. A few places have seen the total value of property sold increase by more than 30%, while others have seen a 16% decrease.
There are constantly conflicting reports on whether the property market is improving, getting worse or just still idling along with no real change. Many have put their life on hold for the last 5 years hoping for some recovery in the property market so they can sell and move on or upgrade, while many first time buyers continue to struggle to save for a deposit and to get on the housing ladder.
Looking at Edinburgh in more detail, the value of property sold across all three price bands (100,000 to 250,000, 250 - 500,000 and above 500,000) dropped by a staggering 60 to 70% between 2008 and 2009 and has not picked up much since. Prices remain at 2008 levels, although houses in the lowest price bracket have taken the worse hit, presumably as these are targeted at first time buyers, who struggle to save a deposit or successfully apply for a mortgage. There has been the most transactions in the higher price bracket.
The most transactions take place in the summer and so anyone looking to take advantage of this peak in house sales, needs to ensure that their property is made ready to sell in the spring and get it on the market early summer.
Since 2009 things have started to improve but very slowly and 2012 saw the highest number of first time buyers since the recession started. Although it is still a very tough time for new buyers and the 20% deposit needed to achieve a mortgage is a definite barrier. There are now more 90% mortgages available for Scottish first time buyers and new Government backed schemes are slowly starting to take effect. Lenders are also starting to make new products available to first time buyers with new initiatives such as the Lloyds Lend-A-Hand mortgage scheme and the Nationwide Save-to-Buy scheme. Lloyds have said they will make 6.5 billion worth of funds available for first time buyers from 2013.
Agents are reporting an increase in enquiries by potential sellers, and in some cases enquiries are up by 40%. They are also reporting more viewings and well located and reasonably priced properties are achieving interest from the market and quicker sales times.
The conclusion has to be that the worst is over and while it will be a slow and steady recovery, the property market in Scotland is starting to show signs of improvement.