Scottish sold property prices are on the move. And if you're a seller or an investor, they're most definitely moving in the right direction: that is, up. Even if you're a buyer, the news isn't all bad: there are still more affordable pockets, plus you may find that you're eligible for one of the help-to-buy schemes.
Edinburgh, Fife, the Lothians and the Borders
Sold property prices in the Scottish capital are now as much as 17 per cent higher than they were at the start of the pandemic just over a year ago. Given the much-reported trend for moving out of cities, why is this? Well, analysts reckon that the true picture is rather more nuanced than the average headline would have you believe. Yes, increasing numbers of people have been looking to move in search of more space, both internal and external, but not all of them have been seeking that extra space in rural areas.
Edinburgh is as an attractive a place to live as ever, especially for those willing and prepared to look to a time beyond lockdown. More than that, it's a major centre of employment, and even those currently working from home may be anticipating a time when they'll be back in the office for at least part of the working week.
Interestingly, it seems that Edinburgh is also being picked as the destination of choice for some people working in other major towns and cities in Scotland and northern England. And we're not just talking about those choosing to live in Edinburgh while working in Glasgow. Estate agents are reporting increasing interest in Edinburgh properties from those working as far away as York. This trend may be a consequence of York's own property price rises, which currently stand at about 25 per cent up on last year's figures. However, they may also reflect who is buying. Ex-Londoners, for example, appear more likely than the average buyer to seek out what they deem "commutable" properties and to be prepared to consider properties within a wider geographical area, especially if this brings them into the orbit of a city like Edinburgh.
Perhaps understandably, this love for Edinburgh is also spilling over into surrounding areas. The Lothians, Fife and the Borders are all seeing an up-tick in demand from buyers. This includes notable interest from individuals and families returning from overseas. In the first three months of this year, the median selling time for properties across these areas was just 26 days, as compared to 25 for the same period last year. Average price rises are steepest in Edinburgh and lowest in West Lothian, which actually recorded an 8.6 per cent drop. Although this price drop is less to do with falling property values in the area and more to do with the sheer volume of lower-priced homes that have come on to the market in the past year, West Lothian is still a good spot to explore for would-be buyers with smaller budgets. As well as sizeable detached family homes, there's currently a good selection of flats and terraced houses, with offers over starting at around £57,000.
Stirling: Scotland's Second City?
Glaswegians might quibble at the tag, but in one sense Stirling is currently Scotland's second city. That sense is, of course, in terms of property prices. Property price rises in the city take the average price to £256,923, leaving it trailing only Edinburgh (an average of £310,357 in February 2021). Perth (£237,904) and Inverness (£201,183) take third and fourth places, while Glasgow is fifth (with a buoyant average price of £191,396). Meanwhile, Aberdeen (£190,895) is sixth and Dundee an admittedly fairly distant seventh (£150,772).
What Makes a Successful Buyer?
Successful buyers in these in-demand areas are not just those with the deepest pockets. They're also those who understand the property-buying process and have taken all the necessary administrative, logistical and financial steps before beginning their property hunt. And as is often the case elsewhere in the UK, they're frequently either first-time buyers or those who have already sold their previous property. Some agents will not entertain an offer from a buyer who hasn't at least put their existing property on the market. Others may go further and insist that only buyers who have sold their current property can place offers. Inevitably, a heated competitive market makes such strategies more likely. (As an aside, if you're a would-be buyer who finds yourself in this situation and consequently worrying that you could find yourself between properties with nowhere to live, you ought to be ensuring that your solicitor negotiates as lengthy a Date of Entry as your own buyer is prepared to accept.)
Especially for First-Time Buyers
If articles like this one make you worry about whether you'll ever own your own home, it's worth remembering that as well as personal lifestyle and fiscal changes, government support and changes to the mortgage market could also assist you.
Although Holyrood declined to extend the Land and Buildings Transaction Tax holiday beyond 1st April, interest rates remain low, making borrowing more affordable than at just about any other point in recent history. And, moreover, mortgage lenders are introducing products supporting higher loan-to-value mortgages, making borrowing more accessible to those who would otherwise struggle to save a large deposit. As more such products come on to the market over the coming months, borrowers will have an even wider selection of potential mortgage options.
Although the First Home Fund (a shared equity scheme), with its finite budget, is now fully committed for the financial year 2021-22 and is no longer accepting applications, prospective buyers may be eligible for assistance from LIFT or the Help to Buy Smaller Developers Scheme. Moreover, it's still possible that the First Home Fund (which aims to assist around 12,000 home buyers per annum) may reopen for applications in the next financial year. The policies section of the Scottish government's own website contains the most up-to-date guidance on what help is currently available.
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