One question which we are often asked by clients is what is happening with the housing market, and whether prices are going to crash. Whilst we cannot answer this with certainty, what we can do is to provide our clients with the benefit of our experience over many years.
What is clear is that the situation in Scotland is not the same as the position in the rest of the UK. The Royal Institution of Chartered Surveyors (RICS) has revealed that house prices stalled in October in the UK after over two years of growth. RICS found that across Britain, 2% more property professionals reported house prices falling rather than rising, ending a 28- month run of growth. However, some parts of the UK are still recording a growth in house prices, including Scotland. What the survey reports is that, in Scotland, we continue to have what RICS describe as “a reasonably firm upward trend but a softer pace of growth”.
Essentially what this means is that properties will not be selling for the huge percentages above home report values which we have seen for the last 2 years, but that there will be a more gradual, sustainable increase – so not all bad news for sellers, particularly if they are looking to buy too! For purchasers, particularly first time buyers, it means that, despite the rise in interest rates, they have a far better chance of being successful in securing their new home.
As ever, our experts in our property department are happy to discuss and advise.
