20 Aug 2014
Aberdeen Property Prices Rising By £5,000 a Month
House prices in Aberdeen have been rising at a rate of more than £5,000 a month, according to Scotland’s leading property lawyer.
The average price of a home in the Granite City was £205,365 at the end of March – but jumped 7.7% between April and June.
Aberdein Considine said the surge, fuelled by the thriving North Sea oil and gas sector, added £15,813 to the average value in just 91 days.
Bob Fraser, senior property partner at the solicitor estate agent, believes the city could now be on course for an unprecedented 20% price rise during the calendar year.
“Recent figures, up to the end of the second quarter of the year, show the price increase for that second quarter alone to be 7.7% in Aberdeen city and suburbs against a UK figure of 2.3%.
“That equates to annual increase in prices of 13.6% for Aberdeen against the UK figure of 8.8% compared to this time last year.
“But certain north-east hot spots have exceeded even these figures with Inverurie showing a 14.5% annual increase and the Stonehaven area topping that with a whopping 18.8% annual rise.”
Despite the recent Mortgage Market Review (MMR) – essentially a tightening of lending criteria, focusing on affordability to borrowers – Aberdein Considine is experiencing record high levels of property transactions in the north-east.
And the threat of rising interest rates has also done little to cool the market in Europe’s oil capital.
“Interest rate rises have historically been shown to have little effect on the market with long-term job security the real deciding factor for most purchasers rather than short-term lending rates,” Mr Fraser said.
“Due to the strength of the local economy and the virtual certainty that any rate rises will be both gradual and minimal, I do not see this as adversely affecting the market.”
He added: “As we reach the third quarter mark for the year, I expect the initial impact of MMR to have worn off and the delays caused by it to have worked their way through the system.
“If this does happen, underlying demand is strong and this quarter may see price increases of up to 5%. The annual increase of property values in the north-east this year may yet edge towards the 20% mark.”
Established in 1981, Aberdein Considine is a national law firm with 18 offices across Scotland, a turnover of £19million and nearly 400 staff.
The broadly based practice – offering corporate and private clients a complete legal, property and financial professional advisory service – was recently named as a top ten Scots firm.
For further information on its range of services please visit www.acandco.com or call 01224 589589.
Issued on behalf of Aberdein Considine by Citrus:Mix.
For further information please contact Phil Moar or Paul Beaton on 01224 439 990 or alternatively email firstname.lastname@example.org
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Scottish Legal News: http://www.scottishlegal.com/index.asp?cat=NEWS&Type=Civil&newsID=64670#64670