Dundee Property Market – Surge in Activity

Over the past week there has been a number of articles highlighting the weakness of the property market and how grim the prospects are for house prices in the UK. The most recent one had the headline ‘UK Housing Market Could Crash Harder Than US’ which appeared in the Wall Street Journal. I disagree with this view and see this as another example of a lack of understanding of the UK property market. There is a shortgage of housing in the UK and this in itself means you cannot compare the 2 markets.

Almost contradicting this view was the recent headline showing that mortgage product availability is at a 3 year high. Figures from Mortgage Brain show that over 2,000 new products were introduced during May representing a 2% increase in product availability. With increases in all 3 main product types there are now almost 4,500 more products available to UK mortgage intermediaries than 6 months ago. This represents a 60% uplift in overall product availability. Encouraging signs can also be seen for home buyers with a 20% deposit or less with the latest status showing that the number of products with the LTD rate of 80% or more has increased by 35% over the past 6 months.

Blackadders monitor the property market throughout Scotland and I can report that my Firm had a very good month for listings i.e. new houses coming on the market in May – May was also our best month for property sales in 2 years. As readers of my predictions for 2011 will know this surge is 2 months earlier than I expected. The Blackadders’ figures for May indicate to me the underlying strength of the Dundee property market in particular and the increasing confidence amongst purchasers throughout Scotland . If we could just get more assistance for first time buyers then I think that May will be the start of the property market coming to life.

I will continue to keep you advised of trends over the next few months.

ps Since dictating this blog I am pleased to report that June’s figures are continuing the positive trend – fingers crossed. In relation to first time buyers I have heard on the grapevine that the Scottish Government may shortly announce a plan – originally promoted by me a couple of years ago – involving the Government guaranteeing part of the mortgage. This scheme would be open to ftb’s and key workers and would allow lenders to increase loan to value percentage available.  A brilliant initiative that should be applauded if it comes off and one which will further help the Scottish property market.

Lindsay Darroch
Head of Property Services

2 thoughts on “Dundee Property Market – Surge in Activity”

  1. Hi Lindsay,

    It is good to hear your positive comments on the future prospects of the property market in this article. Unfortunatly i have been faced with quite a different and realistic scenario.

    As a seller advertising through Blackadders with a new build 2 bedroom flat with Tay and Law views, two double bedrooms a large living/diner room and good sized kitchen which is within walking distance of the City centre I was initialy excited and optimistic about puting my house on the market, since then my positive attitude has taken a woefull and desperate dive.

    Over the last 2 and a half months I have had to drop my price from an initial home report value of £100k to a fixed price of £85k and placed my home in the local paper 3 times, the latest being this week. During this time I have only acchieved a single viewing and not had much positive feedback from my selling agent within Blackadders and in most cases got the general impression that the market is slow and that I may be in this for the long haul.

    I hope that as you predict things will improve in the future however I have sympathy for those like myself who are currently stuck in the mud with good properties which appear to be sitting and sinking further down as time progresses on.

    Best Regards,
    Graham Cannell

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s