Taylor Scott International News
The Scottish residential property market has recorded is highest January home sales in eight years and average prices also rose, according to the latest index figures. Sales in the first month of 2016 increased by 24% year on year with the biggest surge in Midlothian with a rise of 38% with flats and terraced houses driving the growth, the Your Move data shows. Average Scottish house prices increased by 0.8% in January to £171, 079, up from 0.3% the previous month. The strongest growth was in Stirling where property values have jumped 13.5% over the past year. Christine Campbell, Your Move managing director in Scotland, pointed out that transactions in Scotland easily outpaced sales south of the border, as England and Wales only saw a 1% rise over the same time period. She explained that the surge in Scottish home purchases has been propelled by second home and buy to let buyers eager to avoid paying the 3% Land and Buildings Transaction Tax (LBTT) surcharge which is being introduced from 01 April. She pointed out that as this tax hike was only announced in December’s Scottish Budget, January’s surge in sales may only be the tip of the iceberg. She also explained that the growth in Midlothian has been aided by the lower rate of LBTT on the purchase of cheaper properties, with flat and terraced house sales accounting for the largest rise. This trend can also be seen in Glasgow, which narrowly beat Edinburgh to become the area with the highest absolute increase in sales. The only areas in Scotland which have seen a decline in sales from November to January, compared to the previous three months are Aberdeen City and Aberdeenshire. In Aberdeen City sales have fallen by 11% in this time period, as a result of the oil crisis and the large proportion of expensive detached homes in city which are hit hardest by the LBBT. ‘January marks the sixth consecutive month of year-on-year growth in house prices, as the market finds a sturdy footing, putting the shaky start to 2015 behind it. The boost in property values has been driven by improving economic conditions, with employment in Scotland at an all-time high,’ said Campbell. ‘However, this stability may be under threat if the effects of the impending LBTT surcharge mirror those seen with the introduction of the original tax. There could soon be a swift peak in prices as investors rush to buy before the surcharge comes into force, followed by a dip in home values after the implementation of the surcharge,’ she warned. She reckons that the 13.5% or £24,508 year on year price growth in Stirling has been fuelled by Stirling Council’s programme to build 210 new properties in the area, with an additional investment of £9 million planned for 2016. ‘A further boost was provided by the recent sales of two million pound homes in the countryside close to the city, possibly as… Taylor Scott International
Taylor Scott International, Taylor Scott
