The National Records of Scotland (NRS) revelation that the population of Scotland was at its highest ever level last year makes for interesting reading for anyone with an interest in the property market.
Scotland’s estimated population on 30 June 2015 was 5,373,000, a rise of almost 20,000 since mid-2013. The NRS report revealed that the main cause of the surge past the five million figure was mainly down to migration both from other parts of the UK and from overseas, with 85,000 people coming to Scotland over the course of the year.
So what do these statistics mean for the Scottish housing market? Put simply, the rate at which we are building homes is not fast enough to keep up with our growing population. The NRS report showed that the number of households has risen by 160,000 over the last decade and now stands at 2,430,000.
Unfortunately for much of that decade the number of homes being built has struggled to keep pace. Following the downturn in the market in 2008, the number of new properties being built fell sharply exacerbating the problem and, in areas like Edinburgh where the number of households is rising more quickly, the shortage of new homes is even more pronounced.
This current shortage of housing, coupled with projections of a further sharp rise in the number of households over the next decade, results in a rising demand for property and this exerts an upwards pressure on house prices. The latest house price report by ESPC showed that the average house price jumped by 7% annually in the three months to July.
At Warners we are seeing a similar excess of demand over supply. Most homes that come onto the market today are attracting multiple notes of interest allowing sellers to set closing dates where the selling prices achieved often exceed valuation by some distance.
Evidently, a trend is forming when it comes to buying in Scotland, and has been forming for some time. But what does this mean for Scottish home-buyers and sellers?
For those looking to sell, all of this is good news. The balance of power in the market lies firmly with sellers at the moment with most homes spending an average of just three weeks on the market before going under offer.
For buyers, things are a little more tricky. Due to the high levels of competition among buyers, many are having to suffer the disappointment of missing out on a number of properties before they have an offer accepted. The frustration that can come with missing out on a property can lead some people to overbid when they next see a property and it’s important not to fall into that trap if you want to avoid overstretching yourself.
Of course, finding and buying your ideal home is one of the most important experiences in your life and therefore it’s worthwhile to get the best possible guidance.
Warners Solicitors & Esate Agents is always on hand to provide expert advice to anyone and make sure the process is as easy and enjoyable as possible.
If you are thinking about getting a foot on the ladder, or have any questions about buying and selling in general, feel free to get in touch today on 0131 667 0232 or by emailing email@example.com and one of our friendly team will be delighted to help.