A Surge In Scottish Property Sales… And Prices!
9 months ago
Since the re-opening of Registers of Scotland and the partial lifting of lockdown rules allowing people to move house in Scotland on the 29th of June, there has been a significant increase in activity on the housing market across the country.
Are people simply tired of staring at the same four walls for months on end? Have they realised that they need a garden? Are people taking advantage of the reduced tax payable on property transactions or is it a combination of all three?
Not only have the number of properties on the market increased, the value also appears to be soaring. Competition from buyers desperate to find their dream home before being plunged back into another lockdown may also help to explain the rise in house prices. The number of property transactions is even more surprising when we consider that November and December are typically quieter periods.
The Edinburgh Solicitors Property Centre (ESPC) announced in their October House Price Report that from August to October 2020 the average property selling price in Edinburgh, the Lothians, Fife and the Borders had increased by 7.9% compared to last year. Similarly, Registers of Scotland found there to be an increase of 1.3% between the months of July to September on the average price paid for properties compared to the same period last year. Perhaps the most astonishing statistic of all is that ESPC found there to be an increase of houses being put on the market by a massive 44.4 % when compared with last year.
From 15 July 2020, the threshold for Land, Buildings and Transaction Tax (LBTT) for all residential property transactions in Scotland was increased from £145,000 to £250,000 and this is set to remain the case until 31 March 2021. This means that no LBTT is due on property purchases up to £250,000 and could potentially save people thousands of pounds. It is important to remember, however, that those with second properties will still be liable to pay the Additional Dwellings Supplement at 4% of the purchase price.
How long could this surge last? Nobody can say for certain. What is clear is that this is proving to be an extremely lucrative time to sell your property.
Moving house is still permitted across all levels of the Scottish Tier System and Rollos continue to offer in-person viewings. We also provide professionally edited video tours which deliver an immersive experience for viewers. Rollos have seen a significant increase in demand for two bedroom properties in particular and would love to hear from any prospective sellers in this area of the market.
If you are interested in buying or selling in the Fife area, pop into our Cupar, St Andrews or Auchtermuchty office or ring us on 01334654081.