Scottish house prices rose in September 2022 despite the now former UK Chancellor Kwasi Kwarteng’s recent mini-budget and the biggest tax cuts for 50 years. Let’s delve a little deeper in your Scottish autumn property update from Edinburgh Self Storage – the best storage solution if you’re moving house!
Storage facilities: The housing market in Scotland
The Halifax said the cost of the average house in Scotland is £204,305, up 8.5 per cent on September 2021 prices – the lowest rate of growth of any part of the UK, outside London, where values rose by 8.1 per cent over a 12 month period. The Scottish property market has proved to be consistently modest in its annual rate of inflation, making it less prone to the dramatic swings in other parts of the UK.
But this could all turn out to be a stay of execution.
Halifax director of mortgages Kim Kinnaird added that the UK property market will be subject to competing influences in winter and the cost of living crisis, warning that mortgage interest rates approaching 6 per cent coupled with rising domestic fuel bills would corrode the house-buying impetus, and that we could see “more significant downward pressure on house prices in the months ahead.”
She said: “This will undoubtedly be a cause of some concern for homeowners, but the unprecedented rate of property price inflation we’ve seen in recent years has been far above the historic average.
“It’s important to look at slower growth in this context. Since the start of the pandemic, average property values have risen by around 23 per cent (almost £55,000).
“Detached house prices are up by more than £100,000 over the same period.”
UK house price growth slowed from 11.4 per cent in August to 9.9 per cent in September, the first time house price inflation had slipped under 10 per cent since January, and bringing the cost of the average UK property down fractionally from £293,992 to £293,835.
Scotland’s average price of £204,305 remained largely unchanged in the month.
Kim Kinnaird concluded: ”The events of the last few weeks have led to greater economic uncertainty. However, in reality, house prices have been largely flat since June, up by around £250.
“This compares to a rise of more than £10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth.
“Predicting what happens next means making sense of the many variables now at play, and the housing market has consistently defied expectations in recent times.”
Self storage business: Falling UK house prices in 2023
Self storage for business: Investment in commercial property
But there’s a silver lining here where investment in commercial property is concerned.
It’s anticipated that the pound’s fall could see overseas investors’ share of investment in Scottish commercial property reach record levels. According to real estate consultancy, Knight Frank, data for the first three quarters of the year showed they account for more than half of current volumes.
It found that Investment volumes in Scottish commercial property rose by more than one-third – 37% – during the first nine months of 2022 compared to the same period last year – that’s up from to £1.46 billion from £1.06bn.
Offices were the most popular asset type, accounting for just over one-third – £486 million – of total investment volumes.
Industrial property investment almost doubled from £157m to £300m, as interest levels in the sector continued to increase following the pandemic.
Overseas investors remain the most active buyers of Scottish commercial property, representing 53%, of investment at £779m – a fractional increase on their 50% share between Q1-Q3 2021.
UK property companies increased their investment levels by 66%, from £312m last year to £518m during the same period of 2022.
Investment volumes in Aberdeen more than doubled from £54.04m in the first nine months of 2021 to £116.85m – up 116%, buoyed by the sale of two retail parks.
Edinburgh’s investment volumes increased 24% to £415m, while Glasgow also increased by 6% to £377m.
Sources:
herald.com
scottishconstructionnow.com
scottishdailyexpress.co.uk
