‘Buyers stop putting their lives on hold’ as house sales rise 10%

HOUSE prices across Scotland remain stagnant, although the property market is showing some signs of life with the number of sales up by almost a tenth on last year.

Figures from the Registers of Scotland show the total volume of sales during the first quarter of 2012-13 was 17,514 – an increase of 9.2 per cent compared to the same period last year.

However, while sales increased, prices remained largely unchanged – with the average price of a residential property in Scotland at £153,501, a decrease of 0.2 per cent on April-June 2011.

Analysts believe the relative stability of the property market indicates confidence is returning, with people no longer biding their time in the hope that prices will increase.

According to an ESPC survey out this week more than eight out of ten people in Edinburgh and the Lothians are considering a move sometime over the next five years – with more than one in three saying they are actively looking at properties. However, with the banks reluctant to lend and first-time buyers having to raise higher ­deposits than ever before, the ills of the property market are expected to remain for some time.

Despite the recent upturn in sales, estate agents say the volume of sales is still roughly half what it was at its peak in 2007.

According to the Registers of Scotland figures, East Lothian recorded a 36.6 per cent increase in the numbers of sales, while sales in Edinburgh rose 8.4 per cent and in Glasgow 7.2 per cent.

The total value of sales across Scotland registered in the quarter increased by 9.0 per cent compared with the previous year to just under £2.85 billion.

The city of Edinburgh remains the largest market with sales of more than £449 million for the quarter, an increase of 14.5 per cent over the same period last year. Moray showed the highest percentage rise with the value of sales increasing by 40.1 per cent compared to the previous year. The highest percentage rise was recorded in Moray with an average price of £144,813, a rise of 7 per cent compared with the same quarter previously.

Edinburgh recorded the highest average price of £220,428, an increase of 5.6 per cent compared with the same quarter the year before.

The largest percentage fall in price was in Scottish Borders which showed a drop of 13.3 per cent with an average price of £163,222.

Rhona Mackay, commercial services manager at the Registers of Scotland, said: “Sales volumes have changed dramatically in recent years, from a healthy 42,503 sales in the second 
financial quarter of 2007 to when the market crashed in the fourth financial quarter of 2009 with a disappointing 11,800 sales.

“The recent hike in sales may be further boosted when the new Funding for Lending scheme, which aims to improve the availability of credit and ultimately to get growth going in the UK economy, begins next month.”

The Bank of England has provided for a 5 per cent rise in funds for lending – up to £80 billion – over the next 18 months, so the scheme has the potential eventually to deliver a substantial boost to the UK economy.”

Neil Harrison, ESPC’s marketing manager, said: “These figures tie in with what we have been seeing. The market is relatively stable and people are no longer putting their lives on hold and waiting for it to pick up. The market is going to stay as it is so people are thinking this is the time to move.