Sales rise defies home owners fears over Brexit
Home sales continue to increase
An increasing number of Scots fear their property will decrease in value after Britain leaves the European Union – despite sales being higher than last year.
Twenty-one of Scotland’s 32 local authority areas saw higher prices in the third quarter, according to Aberdein Considine’s Property Report.
Even so, Jacqueline Law, managing partner at Aberdein Considine said there has been a sharp increase in the number of Scots who fear Brexit will result in home values plummeting.
“This is perhaps unsurprising given the Prime Minister’s no deal-brinkmanship throughout the month of October, combined with warnings from the Bank of England Governor on the damage no deal would do, particularly to the housing market,” she said.
“There is clearly homeowner anxiety around Brexit, but this has yet to be reflected in sales figures, perhaps due to the greater public having little idea what Brexit will actually look like.
“With another extension in place, we would expect to see these fears ease in Q4 as a new Parliament is elected. The make-up of that parliament will have a big say on what market sentiment will be going into Q1 of next year.”
The report shows that sales hit £5.3 billion during Q3 2019, up by £100 million on the same time last year.
More than 28,000 homes changed hands during the quarter, bringing the total value of sales in 2019 to £13.3bn. It is on course to top £18bn for the second consecutive year.
Edinburgh retained its customary position as the largest market in Scotland, with some £860m of sales, a rise of 4%.
It was a similar picture in the capital’s suburbs, with Midlothian (up 22%), West Lothian (up 12%) and East Lothian (up 10%) all recording rising sale values.
Areas beyond the traditional powerhouse markets of Edinburgh and Glasgow also helped boost the sale figures, with Stirling up almost 13%, and Dundee rising 3.4%.
The market in the North East continued its emergence from the oil and gas downturn with sales in Aberdeenshire up 4.1%, and the overall value of property sold in Aberdeen and the Shire hitting almost £1.2bn for the year, up £24 million on last year.
In a further sign of strong demand, Aberdein Considine’s analysis of the new build market showed that the current average new build price is now at its highest level since the financial crisis, £231,686, up 7.6% on 2018.
And while Aberdeen saw home prices fall 3.3%, the average cost of a new build property in the city reached £299,663, higher than Edinburgh and only behind the Glasgow suburbs of East Renfrewshire and East Dunbartonshire.
Average prices throughout the country were buoyant, and not just in Edinburgh, which cemented its place as the most expensive place in Scotland, up 2.5% to £273,604.
Clackmannanshire enjoyed the biggest rise, just short of 11%, West Lothian jumped 9.1% and Midlothian 8.9%.
Overall the number of homes sold was down slightly, 0.1%, with Glasgow registering the highest volume of sales at 3,287.
This article was scheduled for tomorrow but once again The Scotsman has broken the embargo