ESPC has recently published its review of 2015, which looks back at the property market in east central Scotland over the last year.
According to ESPC, 2015 proved to be more buoyant than previous years since the 2008 crash, despite experiencing uncertainties due to the effects of the different Government changes taking place.
The average selling price in east central Scotland increased by 5.6% in 2015, compared with 2014, although there were peaks and troughs, particularly in the first quarter, when houses prices rocketed as a result of Land and Buildings Transaction Tax (LBTT).
LBTT was introduced on April 1st 2015 to replace Stamp Duty, and its effect could be seen at the start of the year when there was a large increase in the number of top-end homes being brought to market. Buyers rushed to snap up homes over £333,000 before April 1st, to avoid paying the higher tax rate for properties, resulting in average house prices increasing in the first quarter, and then dropping in the second quarter. However, ESPC says that this balanced out by the end of the year.
The number of homes sold in east central Scotland in 2015 rose by 9.8% annually, but growth in sales volumes has slowed down compared with the previous two years. According to ESPC, this can partly be explained by a decrease in the numbers of properties for sale. The number of new homes brought to market in 2015 decreased by 1.7% annually, and the volume is about 40% less than the peak volumes seen pre-credit crunch.
The median selling time in east central Scotland in 2015 was 13.2% faster than 2014 – from 47 days down to 41 days.
Around 57% of sales in 2015 met or exceeded their Home Report valuation, up 12.2% from the previous year.
68% of properties came to market as ‘Offers Over’, compared with 53% in 2014, demonstrating that sellers and their solicitors had increased confidence that properties could meet their Home Report valuation. Properties sold in 2015 that had been marketed as ‘Offers Over’ achieved an average of 6.2% over the asking price, up from 5.4% last year.
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