The Week Unzipped: Number of property sales in Scotland reaches highest level in 17 months

Published on Saturday 7 November 2009 16:37

THE number of properties sold in Scotland rose by 10 per cent in October, reaching the highest level for 17 months, according to the Agency Express Property Activity Index.

Edinburgh saw a 10 per cent boost in sales in October, but Glasgow fared less well. It was one of only four cities in the UK to report fewer sales than in September. Glasgow, however, saw a 10.6 per cent increase in the number of "For Sale" signs outside properties.

The number of sales in Scotland last month was 157 per cent higher than in January. UK house sales were up 13.4 per cent in the month.

Meanwhile, borrowers can look forward to continuing low mortgage payments after the Bank of England's Monetary Policy Committee voted to leave the base rate at 0.5 per cent. It is also to pump more cash into the economy by increasing the asset purchase scheme by 25 billion to 200bn, effectively printing extra money.

Asset prices, such as stocks and property, have risen globally since spring. However, with households cutting back on spending and a reduction in business investment, UK output has fallen by almost 6 per cent since the start of 2008.

Sellers clean up

A CLEAN and tidy house could add as much as 5,000 to the price of your home, according to research by bleach maker Domestos.

Almost a half of buyers are put off by houses in a dirty or messy condition, while one in four would knock 5,000 off the asking price. Would-be buyers find bad smells, dirty bathrooms and messy kitchens the biggest turn-offs.

Most sellers said they wouldn't show a dirty house to buyers. A quarter would spend up to three days cleaning up, while 4 per cent would hire professionals. One in two spend up to 1,000 readying their house for market.

Pension pot pain

PENSIONERS are eating into their savings as interest rate cuts mean they are seeing lower returns on their cash, according to Investec Private Bank

Six million pensioners are dependent on savings to cover up to a fifth of their income in retirement. Almost a quarter of a million over-65s claim to dip into their savings pot for more than half their income.

The average pensioner has 25,000 in their cash savings account, 7,000 less than six months previously. Cash makes up a third of the total assets, excluding property, of people aged 65 and over. Investec says savers with balances of 25,000 are most likely to be suffering from low rates and returns of around 0.95 per cent.

Bond bargains

THE Scottish Building Society has launched a fixed-rate Tartan bond paying 3.75 per cent on a maximum investment term of 16 months, maturing February 2011.

A Tartan bond can be opened in branch or at any of the Scottish Building Society's 80 agencies for deposits from 1,000 to 500,000.

Elsewhere, Nationwide has launched a four-year stepped-rate bond with a 0.5 per cent rate increase every year up to 5.25 per cent. The bond begins at 3.75 per cent in year one for deposits from 5,000 to 2 million.

Finally, Principality is offering savers a guaranteed 4.25 per cent fixed for two years on deposits between 500 and 1m.