Member Article

Highest January Scottish home sales for eight years

Scotland sees highest January property sales since 2008, up 24% year-on-year as buyers rushing to avoid LBTT surcharge according to the latest Scotland House Price Index from Your Move.

Scottish house prices have also picked up pace, rising 0.8% (£1,346) this month, almost triple the 0.3% (£492) uplift seen in December.

The only areas in Scotland which have seen a decline in sales are Aberdeenshire and Aberdeen City as a result of the oil crisis.

Stirling has seen largest increase in house prices of any area, with double digit annual growth.

Christine Campbell, Your Move managing director in Scotland, comments: “The Scottish housing market made a bracing start to the year with the highest January sales since 2008. Property transactions in Scotland are up 24% year-on-year, easily outpacing sales south of the border, as England and Wales only saw a 1% rise over the same time period. 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. 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.

“In Midlothian, property sales have outperformed every other area, shooting up 38% compared to the same month last year. This growth 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.

“Scottish house prices have also been on the move, rising 0.8% (£1,346) this month, almost triple the 0.3% (£492) uplift seen in December. 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. 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.

“Stirling has seen the most significant upswing in house prices of any area, with double digit annual growth. The value of a typical home in Stirling has soared 13.5% (£24,508) year-on-year. This advance 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 second-home purchases are brought forward to avoid the LBTT surcharge.”

Click here to read to full Your Move Scotland Hosue Price Report.

This was posted in Bdaily's Members' News section by Property Editor .