Call us today on 0141 552 9193
GLP News

News, Comment & Opinions on the latest legal stories

Glasgow Law Practice White

Practice made perfect

Average Property Prices Rises Across Scotland

House prices across Scotland rose by £4,300 in June squashing fears that the property market would not respond well following the introduction of a new form of tax.

A report found that average house price in Scotland was £169,227 in June, up 2.6% on the previous month and 1.2% on the previous year, according to the Your Move/Acadata house price index.

While experts stated that the main factor in driving sales was an increase in sales of properties worth over £1 million, Glasgow saw the strongest increase in sales with an 18% increase in the demand for flats and properties in the area.

Factors in Property Values

Many experts have stated that the rise in the number of sales and the value of properties have purely been down to an increase in sales over £1 million. Such sales dropped following the introduction of the new land and buildings transaction tax (LBTT) which resulted in larger charges for those buying expensive properties.

In April, no properties over £1 million were sold in the UK after a whopping 88 were sold in March prior to the tax being introduced. However, although April was barren, sales of such properties have risen with six being sold in the last month of figures being released.

Marked Rise in Number of Property Sales

While some areas such as Inverclyde saw a downturn in the number of sales, some experts have stated that as well as the re-emergence of million pound properties on the market, there was an also rise in the number of sales across the country. The number of transactions in June rose with 9,265 recorded by the Registers of Scotland, up 25% on the previous month. The figures also marked a 5% increase than in the previous year. It also marked the most activity since July 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%.

Christine Campbell Your Move managing director in Scotland said that although there had been doubts about the new tax system, the property market in Scotland was back in smoother waters. As well as the rise in property values, she cited a demand for location and affordable houses in many areas of regenerated Glasgow as a reason for the rise in the number of sales. She said that the increase in sales: “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.” According to Campbell, “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.”
She added: “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 typical flat in Glasgow which stands at £120,000.

“As a result, Glasgow has experienced the strongest jump in house purchases overall, with sales up 18% in the second quarter compared with the same period in 2014, while Edinburgh sales have seen just a 2% upswing over the same period.

“Low-interest rates, competitive mortgage deals, and higher average earnings have caused a swell of confidence and buyer demand, particularly in a cheaper area.”

Some specialists have warned that the figures may be somewhat false with the market simply playing catch up. John Tindale, senior housing analyst for Acadata, said: “Traditionally, the number of sales in June increases by 9% from the levels recorded in May, so the 25% increase recorded this year is significantly higher than our seasonal analysis would predict.

“However, sales in May this year were below the seasonal norm, so it would appear that the market has been playing catch-up following the general election in May, which possibly introduced uncertainties for potential buyers and hence resulted in lower sales that month.”

Buying a Property in Glasgow

Buying a property can be one of the most difficult and stressful things to do and in such times it is often worthwhile to trust an expert and to seek their advice and guidance throughout the process. At the Glasgow Law Practice, we are experts in conveyancing and can provide you with the advice and guidance to ensure that you get the property that is best for you.

Contact Us

If you require the advice of our Glasgow-based solicitors, contact us today using our online contact form