The Scottish Property Recovery
There is a renewed air of positivity around the Scottish property market and it’s not simply summer optimism, there are hard stats to back it up. Here we share recent reports that illustrate the extent of the Scottish property market’s recovery and explain what it all means.
The Registers of Scotland report looks at trends over a ten year period from 2005 until 2015. It looks at all property sales, both those using mortgages as well as those that didn’t. The report shows an increase in sales between 2005-06 and 2007-08, then again from 2014-15. While sales volumes have decreased overall in the past ten years they have reached a recent peak between 2014 – 2015 up 6.2% on the previous year and the highest levels seen since since 2007-2008.
It also shows that average prices for all types of residential property have increased over the ten year period and that cash sales now account for 35.6% of the market now, a big increase from 17.6% in 2005-06.
The Bank of England report was published on 9th June. This reports on the lending activities of around 300 Mortgage Lenders and Administrators on a quarterly basis. This quarter’s report illustrates fewer mortgages are being approved. Approvals to buy a home have declined by almost 38% in the seven years between 2007 and 2014. The report indicates that lenders are more risk averse post recession but also shows that the number of mortgages in arrears is lower in 2015 than it was in 2007 indicating that this might not be wholly necessary.
Both reports offer insights into the nitty gritty of the Scottish property market and The Registers of Scotland can be used to scrutinize each area of the country and better . We can see mortgage lending is less risky than it was pre-recession as The Bank of England report illustrates. The lower number of mortgage approvals show that lenders attitudes are yet to change which could be advantageous for cash buyers or those with larger deposits who can secure mortgages and buy now.
For those with the capital to invest in property outright this is good time to consider investing. These reports both offer invaluable insights into the property market and allow you to make smart investments.
If you are thinking of buying and need help finding a property and mortgage that will suit you get in touch with us. Our property partners can make sure that you make the most of the reports findings on your area and help you to make the most of your investment.
If you would like to speak to a specialist at Cairn or would like to find out about off market opportunities you can get in touch with us by e-mail, through our website or in person at our Glasgow head office.
We are also happy to answer any of your questions through social media where you can get us on Twitter, Facebook or Linkedin.