The UK housing market has been hit by high interest rates and mortgage costs. These have impacted affordability and supply. However, latest figures suggest that Scotland could see a surge in sales this summer as seller and buyer confidence returns.
Record number of homes hitting the market in Scotland
Recently published data showed a 22.9% increase in new homes hitting the market across Britain over two weeks at the end of June, compared to the start of the year. However, Scotland saw the largest rise in properties new to the market. A total of 5,060 homes were listed over the same period in Scotland, a 36.4% rise compared to January.
Interest rate cuts will help
This activity was pre-election, but many are confident that the surge in interest will continue, with the additional supply attracting more buyers to the market. Interest rates and mortgage rate cuts will also help. The Bank of England is expected to cut the base rate from its 5.25% high at its next review announcement on 1 August. Once interest rates fall, then mortgage rates should follow.
Average price is now £185,000 in Scotland
According to the 2023-24 Annual Property Market Report by Registers of Scotland, published in June, the residential property market is now worth £20.7 billion in Scotland, with average prices increasing 147% over the last 20 years to £185,000. The price has held constant on 2022-23, although the number of sales dropped 8% compared to last year. Sales are already picking up, however. According to the June edition of the ESPC House Price Report, sales volumes rose by 16.9% across Edinburgh, the Lothians, Fife and the Scottish borders between April and June 2024. The average house price across those areas hit £280,419, with the biggest rise in West Fife and Kinross, where average property prices rose 8.2% to £220,715. New property listings across the regions also rose, up 14.4% year-on-year.
Prime performing particularly well
While demand is growing for Scottish properties in general, in the prime sector it’s surging, according to figures published by Savills. They showed that Scotland’s prime market had seen a record number of agreed sales above £500,000 during the first quarter of 2024, thanks to greater stability in the cost of mortgage debt and an easing of inflation. The Savill research also highlighted a
29% increase in the same period in the number of buyers registering with the company to find a prime Scottish home.
If you are looking to sell your home this summer, we’d love to hear from you. We will work fast to market your property and take great pride in client satisfaction. Give us a call on 01382 203000 or email: contact@thechamberpractice.co.uk