BLACKADDERS WILL LIST YOUR PROPERTY FOR SALE WITHOUT ANY UPFRONT COSTS

August 20, 2015

List_Now_Board

For a limited period, Blackadders will list your property for sale with no up front costs. To find out more please contact a member of our property team at our offices below:

Aberdeen:     01224 452750
Dundee:         01382 342222
Edinburgh:    0131 202 1868
Perth:             01738 500600
Arbroath:       01241 876620
Forfar:            01307 461234

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

BUDGET TAX CHANGES IMPACT DEMAND AND PRICES

August 14, 2015

I was interested to read a report from Moody’s Credit Agency advising that restrictions on mortgage interest relief for buy to let landlords will slow house price growth in the short to medium term.  Moody’s have advised that in their opinion this tax change will produce reduced demand for buy to let properties, having a knock-on impact on UK house price growth.  I also have concerns regarding the impact it will have on rental property, availability, rents being charged and also the free movement of the lower end of the property market.  Watch this space!

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

FURTHER CLAMP DOWN ON BUY TO LET MARKET

August 14, 2015

I am concerned to note the ever increasing sentiment from both UK and Scottish governments, which is anti the property investor.  George Osborne’s recent crackdown on buy to let tax relief and the Scottish government’s constant attacks on the private rented sector, are starting to have an impact.  A recent report in the Daily Mail advises that banks are set to launch a new clampdown on buy to let mortgages, with applicants facing stringent financial checks.

I am concerned on the impact on the small private property investor who is looking at a means of supplementing his pension and the unforeseen consequences that this will have on both the rental sector and property market as a whole.  I fear that in relation to the rental sector there will be less properties available, leading to increased rents and I am concerned that the new regulations will also encourage some landlords to drop below the radar.  Increased rents have an impact on first time buyers, as this reduces their ability to save for a deposit.  The lack of property investors also has an impact on the first time sellers and their impact to sell their property and the price that they eventually achieve.

As readers of previous blogs know, I think that property investment forms an important part of a mixed investment portfolio and with the correct advice, can be a very useful addition.  I am also concerned that we will see a repeat of the mid to late nineties, with a number of properties languishing on the market because they are of no interest to first time buyers and property investors have been driven away.  I will continue to report on trends.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

FURTHER MIXED MESSAGES FROM THE HOUSING MARKET

August 12, 2015

The recent Lloyds Bank home owners’ review indicates the number of home owners has risen sharply over the past twelve months and is still far lower than before the financial crisis.  The review indicates that the first six months of 2015 has seen a fall of 9%, compared to the same period in 2014.  What is causing this?  Whilst I am sure that the extra costs associated with moving home, together with a slight apprehension regarding increasing interest rates has had an effect, I think the biggest dampener on the housing market is the number of properties coming on to the market – increasingly I am hearing the mantra  “I am not going to market my property until I see somewhere I want to buy”.  My hope is that this is the time for the developers to come into the market and start increasing the number of new build properties available, which will hopefully free up the second hand housing market.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

Registers of Scotland Update

August 5, 2015

Registers of Scotland have announced that house prices rose 3.5% in the first quarter of 2015/16 compared to the same period in the previous year.  The average house price in Scotland from April to June was £167,765.  This is the highest figure recorded for this quarter since Registers of Scotland began compiling quarterly statistics in 2003.  The volume of transactions were very similar to the same quarter in 2014/15 with a 1.6% increase.  This certainly reinforces the message I am seeing which is the number of properties coming on the market is at best the same if not slightly down on this time last year.  I will keep you advised of trends.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

Mixed Messages from Housing Market

August 4, 2015

Strange messages from the housing market with the latest mortgage monitor from e-surv indicating a 27% drop to the end of June 2015 in the number of first time buyers.  The number of first time buyers in June was 7% lower than in May.  Various banks, however, are reporting an increase in the number of applications for high loan to value house purchases which would normally be indicative of first time buyers.  It will be interesting to see if the number of first time buyers increases over the next few months.

Why is this so important?

As readers of previous blogs will know, the housing market is very much like the food chain and what happens at one end has implications for activity at the other.  For a free flowing property market, the number of first time buyers needs to be in excess of 40% of all purchases.  I am still very much of the view that first time buyers need support at this time.  There is also a requirement for an increase in the number of houses to be constructed, thus ensuring that the UK housing market supply and demand ratio does not get out of sync, causing a housing bubble.

Interesting times!

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

ASB Awards

July 30, 2015

Awards_Star_graphic_2015-03

I was delighted once again to be involved with the judging of the Association of Scottish Business Women’s Annual Awards.  As usual, it was very interesting and, in fact, inspiring to speak to the various nominees and I wish them all the very best of luck.   I would also like to congratulate Alison and Wendy for their organisation of the judging process and a big thank you to my partner-in-crime, fellow judge Tracey Thomson from RBS Edinburgh for making a fun day.  For those of you who have not been before, I would thoroughly recommend the awards dinner on the 18 September this year.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

HOUSE PRICE RISES A TICKING TIMEBOMB?

July 23, 2015

Readers of previous blogs will know that I am concerned regarding the lack of properties coming on to the market which is causing a sharp increase in house prices.  With this in mind I was interested to see a headline from the Centre for Economics & Business Research advising that their prediction for house price rises, throughout the whole of the UK, has gone from 1.5% to 4.7% for 2015.  It is stressing that a chronic lack of stock has changed its views and predictions regarding the house price rises.

I am concerned that another unsustainable housing bubble is being created especially due to the lack of assistance for first time buyers and the support for small to medium developers.  The government needs to urgently tackle this problem.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

HOUSE OF LORDS IMPACT ON RIGHT TO BUY?

July 22, 2015

Interesting to read a story from Estate Agent Today advising that the House of Lords as voted in favour of an amendment to the housing bill in relation to the right to buy scheme which would prevent charities being compelled to use or dispose of their assets in a way which is inconsistent with their charitable purposes.  As I have mentioned I am generally supportive of the idea of right to buy but  I do think that the proposals need to be very carefully considered before being enacted.  I will update you as soon as I hear further.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk

NO MANSION TAX – PART 2

July 22, 2015

I was interested to hear on the Andrew Neil programme last week that three out of the four candidates standing for the Labour leadership dismissed the possibility of re-introducing the Mansion Tax.  This is a positive sign and hopefully we will now have a grown-up and sensible debate regarding assistance that can be given to the property market.

Lindsay Darroch
Partner – Head of Property
www.blackadders.co.uk


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