Scottish estate agency forecasts spring bounceback for housing market

25/11/2024
Andrew Diamond, a Partner and Head of Residential Property at Lindsays

It could take until the spring for Scotland’s housing market to fully bounce back from nervousness seen in the lead-up to the UK Budget, a property expert believes.

Lawyer Andrew Diamond has described the market across the country as ‘sticky’, with many having delayed venturing into it until hearing the detail of what Chancellor Rachel Reeves had to say at Westminster last month.

But he believes the longer term mood music is more upbeat, with the Royal Institute of Chartered Surveyors (RICS) recently describing property prices in Scotland as “firmly positive”.

Mr Diamond, a Partner and Head of Residential Property at independent Scottish solicitors and estate agents Lindsays, said: “The market is definitely sticky at the moment. The real-time picture is that it’s not easy.

“There was undoubtedly a bit of stand-offishness around the Budget and what the Chancellor could do. Many people long-grassed decisions about whether to buy or sell until they had heard the detail.

“Markets do not like uncertainty and there was certainly that in the lead-up to the Budget. That has held some people back”

There are hopes that the Bank of England’s recent interest rate cut – down by 0.25% to 4.75% – will make mortgage deals for buyers more attractive.

And, while the most recent UK House Prices Index showed average property prices in Scotland topping £200,000 for the first time, Mr Diamond believes the market is more complex than that.

“A lot of the statistics we see point to the market being fine – interest rates are coming down, demand’s still there, prices are rising steadily and no alarm bells are ringing. But the real-time picture is tricker than that,” Mr Diamond, who is also chair of solicitor estate agents’ collective ESPC, added.

“People have been cautious in recent months to see how the political picture plays out. My sense is that things are starting to loosen post-Budget – and that’s true for deals generally, not just in housing.

“But it might take until the spring for the market to pull away from the stickiness we are seeing.

“The flipside of that is that, for sellers, it is a good time to get on the market because competition will increase as we head towards the spring.”

Lindsays operates estate agency services from its offices in Edinburgh, Dundee, Perth and Crieff.

Its advisors say the buyers in the strongest position remain those who are ready to move as soon as a deal is completed, with those trying to purchase properties subject to selling their own often finding themselves disadvantaged.

In its most recent UK Residential Market Survey, RCIS, whose members are on the frontline of valuing properties, say its members are largely of the opinion that property prices will continue to rise over the next three months.

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