By September 2021 market update and highlights
This month’s UK House Price Index has been released and indicates annual house price growth across the UK at 6.1%, pushing the average price of a home to £235,000.
In Glasgow the annual house price growth is currently at 5.1% with an average value of £129,100, Edinburgh 2.5% and £244,600 and Aberdeen 0.2% and £143,100.
The main headlines from the report are: -
• Buyer demand remains higher than typical for this time of the year, amid lower levels of supply
• Imbalance between demand and supply continuing to put upward pressure on pricing
• Market moving at fastest pace in five years all summer – time to sell under 30 days since May
On the outlook for the rest of the year, Spencer Wyer – Vice President of Product & Technology for Hometrack, commented “Personal finances may come under more pressure in Q4, but while this may have a moderating effect on the sales market, we don’t anticipate it to be significant. Buyer demand will remain elevated for the rest of 2021, with the potential for a recovery of sales stock in early 2022 as activity returns to more normal levels.”
The supply and demand imbalance is the consistent issue we are experiencing across our branches at the moment, with demand for homes up 19% compared to this time last year and the supply down 5%.
In Glasgow, Paul Burns – Director at Scottish Property Centre Cardonald, stated “The market has remained strong in Cardonald throughout September with 12 closing dates so far and another 4 arranged for next week, the closing dates thus far have resulted in excess of 75 offers combined, which emphasises the level of demand for properties in the G51, G52, G53 & PA1 postcodes.”
“SPC Finance has also been really busy with mortgage application for potential buyers, however while the interest rates are low and banks are keen to lend the challenge seems to be purchasers just can’t find or secure a property.”
Craig Smith from the Shawlands branch commented “despite general viewing numbers dropping over the past couple of months, the lack of supply is resulting in continued competition between buyers and therefore closing dates for the majority of properties. Sales achieved are consistently between 10-20% over the home report value. Demand for 3 and 4 bedroom family homes are in particular high demand, with one recent home in Newton Mearns having 54 viewings and achieving almost 25% over the home report value. The first time buyer market also remains strong with 1 bedroom tenements in G41, G42, G43 and G44 selling at record levels.
The rental market, albeit rarely ever quiet, is now experiencing unprecedented demand in the Southside and this month alone we have had 1,043 new tenants register with us at our Shawlands branch. Properties are available to our database of qualified tenants for a matter of hours, at which point we are having to suspend viewings due to the demand.”
Archie Love, Director at our Motherwell branch reports – “In North Lanarkshire we have seen a slight reduction of houses coming onto the market and prices have possibly reached their peak.
Agents are competing fiercely to list new instructions and the agents who have overpriced to win the business are now price reducing after 3 or 4 quiet weeks on the market.
We, on the other hand, are getting our pricing spot on and are selling 90% of our stock in about a week with most going to a closing date. Our clients are delighted with the results and the job we are doing for them.
As for the rental market, 98% of our stock is fully occupied and any that become available are receiving high volumes of enquiries and are taken quickly, assuming the referencing stack up.
Some landlords have taken advantage of the market demand and in many cases have asked us to increase the monthly rents. We would love more valuations and listings to show off our expertise in selling at the right price in textbook fashion.”
And finally, Liz Dineley from our Argyll branch commented “An exceptionally busy month in the Argyll office in Dunoon, we accepted more offers on behalf of our sellers than any other month this year!
Although the number of viewers may have dropped slightly we are still receiving offers in excess of home report value and continue to seek additional properties to satisfy the buyer demand.”
As always, if you have any questions relating to the property market, or would like to discuss the current valuation of your home, please feel free to get in touch with your local Scottish Property Centre branch.
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