Scottish Property Market Bounces Back with Increase in Sales of Over £1M
The Scottish housing market is finally showing signs of bouncing back from the recession with the sale of homes worth over £1M rising by 70% in ten years.
The figures, released by the Registers of Scotland, also show that despite the recession in 2008, the final quarter of 2014-2015 saw the highest average house price of the decade at £173,830. However, the volume of sales actually dropped by 35.1% in the last ten years.
The report has the accolade of being one of the most thorough and comprehensive analyses of the Scottish housing market, covering a ten-year period from 2005 to 2015. The figures reveal some fascinating trends during a period of intense instability for Scotland, which saw its place within the Union under threat.
The report highlights the steady increase in house prices, especially between 2005-2006 and 2007-2008, with prices remaining stable between 2007-2008 and 2013 and 2014. This then resulted in an increase in 2014-2015.
Terraced houses had the biggest price increase across the decades, while flats had the lion’s share of the market at 41.2% of residential sales.
The figures also indicate that after a substantial decrease in transactions, sales began to improve again with the highest post-recession number of sales recorded in 2014-2015. The number of sales in 2014-2015 were the highest since 2007-2008 and demonstrated an increase of 6.2% on the 2013-2014 figures. This is, however, 38.7% below the ten-year-high achieved in 2006-2007.
There are believed to be several reasons as to why the Scottish property market is currently showing signs of significant improvement. Scotland’s decision to vote no in last year’s referendum is believed to have been a major factor in this resurgence. Investors appear to be clambering to invest heavily in the country after a period of particular uncertainty in which there was a stark contrast between Scotland and the rest of Great Britain.
The high level of uncertainty that surrounded the referendum in Scotland prevented the country from experiencing the same levels of price increases seen across the whole of Great Britain. This means that there are currently large areas of Scotland that are massively undervalued and ripe for investment.
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