11 Jul 2014

House prices in the UK have surpassed the 2007 peak

House prices in the UK have surpassed the 2007 peak

Alan Cumming, Asset Manager & Estate Agency Manager, reports on the Nationwide Building Society report that house prices in the UK have surpassed the 2007 peak.

Alan Cumming, Asset Manager & Estate Agency Manager, reports on the Nationwide Building Society report that house prices in the UK have surpassed the 2007 peak.

The first half of 2014 has been extremely positive for the Scottish housing market. In the first three months of 2014 the volume of sales has increased by 22.9% compared to the same period for 2013. The average house price also increased for the same period – albeit by a more modest 3.5%. 

The main cities across the country are reporting increased activity which has been boosted by the Spring market. In the North East prices have returned to and in some cases surpassed the previous peak seen in the 2007/2008 market. For the first time in 4 years the Edinburgh Solicitors Property Centre reported that the majority of properties sold in Edinburgh in the first 6 months of the year achieved their valuation price and in Glasgow 55% of Glasgow Solicitor Property Centre member firms are reporting that they now generally sell property at or above the home report valuation. 

The Registers of Scotland recently released a 10 year property market report which shows the highest average price of a residential property in Scotland was recorded in the 2013/2014 financial year although interestingly the volume of sales for the same period was almost 50% down on the peak 2007/2008 level. 

There are still geographical differences across the country with pockets of the far north and south not experiencing the “property boom” that some news reports are suggesting. Areas of the Highlands and Islands, Dumfries and Galloway and The Scottish Borders remain flooded with property for sale and a lack of demand is driving down the eventual sale price achieved. 

However if the trends experienced in the first six months of the year continue in the bigger cities a ripple effect may be created which should improve market conditions in these areas. 

The first half of the year has seen some great statistics and reports and there is a real excitement and energy around the market once again. However following the Mortgage Market Review and with an interest rate rise likely before the end of the year the remainder of 2014 may see more modest price and volume of sale rises. 

Alan Cumming,  Asset Manager & Estate Agency Manager


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