Surge of interest in north properties as lockdown eases
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PROPERTY NEWS: Bruce de Wert looks at how the property market has fared in the three months since the coronavirus lockdown began
First Brexit, now Covid. Never a dull moment. However, there is some good news, as estate agents are open as of June 29.
We entered 2020 with optimism that the property market would go from strength to strength. Unfortunately, due to Covid-19, the First Minister said no buying and selling and Registers of Scotland, which is responsible for keeping public registers of land, property and other legal documents, shut down entirely on March 26.
So, in light of all of this, how has the property market fared these past three months?
On the plus side, UK average house prices rose 2.1 per cent.
Closer to home, the price in Scotland rose by 1.5 per cent to an average figure of £151,856. Detached houses showed the largest annual increase in Scotland of 2.5 per cent. As for the most “in demand” type, it is new-build property. Many younger people now see this as being a more desirable property to have, as it is, to all intents and purposes, “a house made just for them”.
Since Covid, the Highlands has suffered a decrease in value of up to five per cent but it should be noted that this is directly linked to the lockdown and may simply be a blip in what has been a general rise in value of property in Scotland.
It should be noted that in our estate agency we have seen properties in the north of Scotland retaining the same value in most instances over the last year, with most achieving the asking price. There have been several closing dates where properties have, in fact, reached figures greater than the asking price.
We have seen a massive surge in contact from English buyers looking to purchase property.
The truth is that we do not know what will be the new normal and, despite the obvious chaos that has come about and continues to linger, we may very well find that we come out of this pandemic in a much stronger position than we entered.
Happily, over the course of lockdown we have seen a massive surge in contact from English buyers looking to purchase property in order to escape the gridlock of the cities. Many have taken the view that working from home can become the new normal way of working, and where better to work from home than in the north of Scotland?
Open areas are a very scarce commodity in the UK and, as such, people in light of the Covid-19 pandemic may look to this as being a higher priority than it previously would have been. Even our towns are more open and, certainly, not congested in the way they are down south.
For those stuck in limbo asking, “Is there light at the end of the tunnel?”, the answer is “Yes.” While it is extremely difficult to predict whether properties will increase or decrease in value, we can rest slightly easier knowing that surveyors are back to work. We will look on, with interest, to see what this will hold in store for prospective sellers in terms of valuations.
As well as viewings, property moves themselves are also permitted as of June 29. This phase two introduction has been met with a great deal of optimism as the country looks to kick-start the economy which has almost flatlined.
Paul Hilton, CEO of ESPC, said: “We have noted increasing activity in recent weeks, such as viewing and valuation requests, highlighting the growing demand to move.
“The moving process will be different to before Covid-19 and people will need to adjust to the new normal. However, the Scottish Government guidance provides clear advice to members of the public and businesses involved in property transactions.
"As the guidance states, we also recommend that anyone looking to buy or sell property in the present circumstances speak to a solicitor.”
So, if you are a buyer, this may be the perfect time to get viewing in order to make sure you don’t miss out on what we anticipate to be the surge of viewings and offers that will be coming in for properties!
If anyone would like to comment on this article, or for this column to touch on any particular matter, please email me on bruce.de.wert@georgesons.co.uk.
- Bruce de Wert has over 25 years of experience of law and estate agency and is the principal solicitor at Georgesons.
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