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Residential

Major upturn in Scottish housing market

Q3 2013

House sales in Scotland jumped considerably in the first quarter of the financial year, as did the value of the properties that were sold.

House sales in Scotland jumped considerably in the first quarter of the financial year, as did the value of the properties that were sold.

Registers of Scotland (RoS) revealed there were 1,491 more sales across the country between April and June, up 8.1% on the same period in 2012, as both buyers and sellers displayed renewed confidence in the market.

These sales, meanwhile, were worth more than £3 billion in total, an increase of £200 million year-on-year.

Flats were the most common sale across the country during the three-month period with a 16.5% increase compared with last year, while the average price of property fell by 0.3% over the year to £153,102.

“It’s extremely positive to see an upturn in the market with sales volumes increasing by 8.1% over the past three months,” commented RoS director of commercial services Kenny Crawford.

“There have been some areas that have experienced a decrease but with the total value of sales increasing by 7.7% compared to the previous year, it’s an encouraging indicator of improvements in the residential property market.”

Edinburgh was the busiest area overall in terms of sales, while the most expensive place to buy was Aberdeenshire with an average price of £215,589, up more than £10,000 compared with the same period of 2012.

Julia Willett, associate in Strutt & Parker’s Banchory office, said: “We have seen an approximate 5% rise in Aberdeenshire’s property prices in the past year and these figures certainly tie in with what we are seeing in the area. The price rises may not be as high, year on year, as those we experienced prior to 2007 but they show a steady, and hopefully more sustainable, growth.

“We have not seen a dramatic increase in transactions but the number of sales has remained steady and the Aberdeenshire market, particularly in Deeside or within a 25-mile commuting radius of Aberdeen, continues to be characterised by competitive closing dates, strong offers and a surplus of demand over supply.”

Blair Stewart, partner in Strutt & Parker’s Edinburgh office, said: “Our figures show that the level of transactions in Edinburgh City is significantly up compared to this time last year. This may, in some part, be due to a late spring market. June and July have been marked by far more activity, and some very successful closing dates, than we would normally expect at this time of year. This is having a very positive effect on momentum in the market and I am optimistic about the coming months as a result."

The picture is reflected across the UK, with Strutt & Parker sales figures for last week alone up 59% on the same week last year. Meanwhile, new applicants were up by 40% and viewings were up by more than a quarter.