Two Dumfries and Galloway houses starring in the latest episode of Scotland’s Home of the Year is our cue for a Scottish residential property market review June 2023.
Beech Trees, a new-build, eco house with a sustainable design, is home to Zoe, Tony and their three black Labradors, while Helen Joyce and husband David reside in rival fellow Thornhill property Knocklimpen, a former milking barn.
Beech Trees boasts one-level living, with Zoe and Tony turning their hands to running up curtains and crafting cushions, and using beech trees from the land the house was built on to make shelving, window frames and a garden table.
Knocklimpen, meanwhile, had been empty for over 25 years and the couple wanted to retain the original character and integrity of the barn that’s been enhanced by a modern extension.
We’re big fans of the show at Heathhall Business Centre and may the best house win!
Now, let’s get down to business.
Scottish residential property market review June 2023
Leading property experts release house price indexes every month – but they often paint contrasting pictures, and the fact of the matter is that prices have varied wildly across the UK since the pandemic.
Let’s start with the latest from the Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. It says that Scotland’s residential housing market continued to slow through May, with downward pressure resonating from nervousness about further interest rate hikes.
But house prices seem to be holding up well. A net balance of +33% of respondents saw prices rise over the past quarter, up from +23% in April.
And despite the weakening demand, surveyors in Scotland are generally more optimistic compared to the UK average, where -29% of respondents expect prices to fall over the next quarter.
In response, Thomas Baird, MRICS of Select Surveyors in Glasgow said, “Whilst there is a clear slowdown in the Scottish residential market, we have seen some uplift in the number of home report instructions and perhaps signs of a bounce back.”
Ian Morton, MRICS of Bradburne & Co in St Andrews added: “The market has stagnated earlier than the usual summer holiday slow down and sale prices are closer to Home Report figures.”
House prices in Dumfries and Galloway
The average house price in Dumfries and Galloway is now £180,090, still well below the Scottish average of £220,351, and we’re one of ten regions in Scotland that failed to see a rise in their average property values over the last year, says research by Walker Fraser Steele.
In March there was a 1.4 per cent drop in property prices locally compared to the same period in 2022, and a 0.9 per cent drop on the previous month of this year.
Scott Jack from the firm said, “The longer days of spring have traditionally seen growth in housing sales in March in Scotland and this year is no exception.
“The affordability challenges that have deterred buyers in the first quarter of the year may be easing very slightly, especially for those who choose to move and take fixed rate mortgages that protect from further rises.
“Despite the cost of living crisis, many agents are reporting plenty of enquiries for purchases and the right kind of properties for sale are still in short supply in many areas. Country and village houses remain popular and in short supply. Home movers still want access to outdoor space, which, together with the need for a home office, are among homebuyers’ most popular requirements.”
Business is booming for some
Scottish agency DJ Alexander recorded its highest ever sales figure in May, achieving over £15m of property sales.
According to the firm, the Scottish property market has been booming over the last year, with Edinburgh and Glasgow leading the charge.
The volume of properties advertised for sale in Edinburgh in May was at its highest since January 2021 and there are signs that demand continues to remain strong, says the agency.
Further extension of rent cap on private housing
And we must give a mention to the Scottish Government’s intention to extend Scotland’s private sector rent cap by a further six months.
Tenants’ Rights Minister Patrick Harvie said the Scottish Government will seek the approval of Parliament to introduce a final extension, taking the measure up to 31 March 2024 at the latest.
Emergency regulations will cap most private rent increases at 3%, after the legislation was amended from 0% in March, likely to cause controversy with landlord representatives that have mounted a legal challenge in the Court of Session.
Sources:
scottishbusinessnews.net
insider.co.uk
dng24.co.uk