DEVELOPMENTS ON THE INCREASE

As stability comes into the property market and normality returns to bank lending, I am noticing an increase in the number of developers that are now actively looking at the market. This is the full range of developers from major nationwide developers to local developers looking at small developments. At this stage in the cycle of the property market, there is an urgent need for an increase in the amount of properties that are available for people to purchase. It is also good to see individuals and banks willing to invest and speculate in the property market.

I attach a picture of a sign of a recent development that we have become involved with, the re-development of the Taychreggan Hotel in central Broughty Ferry which will provide six luxury flats in a prime location. For more information, contact the Blackadders property team on 01382 342222.

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

PROPERTY MARKET UPDATE

The first five months of 2016 have proved to be very interesting.  For the first quarter of 2016 new properties coming on the market were approximately 8% down.  This was causing an increase in prices and led to me fearing a stagnating market.  The introduction of the Additional Dwelling Supplement on the 1st April 2016 manipulated the market and caused a massive surge of transactions, culminating in a mad March.  Certain areas in Scotland were indicating that March figures for flats were in excess of 40% up on the same time as last year.  Again, I was concerned that the market may have sold itself out and that this would distort figures for the remainder of the year.

I am delighted to advise that my feeling is that there has been a big increase in the number of properties coming on to the market in April and May.  I expect that to be reflected in nationwide figures when I get the official figures at the end of June.  The right properties in the right areas are still flying off the shelf and achieving good and increasing prices.  My anticipation is that the number of properties coming on the market will continue to increase and that by quarter 3 of 2016 we will see a level of activity in the property market similar to 2006 i.e. just before the extreme highs of 2007.

As a split between the four main cities, Aberdeen continues to be in the doldrums, Edinburgh and Dundee are both performing strongly and Glasgow is on fire.  I will let you know as soon as I have a further update.

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

BREXIT AND THE HOME REPORT

I have been interested to read recently a number of reports in relation to Brexit and the housing market.  Firstly I would advise that at ground level I have not noticed any residential transactions being postponed because of the imminent EU Referendum.   This is very much against my experience of the Scottish Referendum where I noticed a number of transactions being postponed or cancelled.  I am sure that at a higher level, in particular in relation to businesses that export to Europe, investment plans or property expansion plans are being put on hold or postponed until after the Referendum.

So what if we vote to leave?  In my opinion and from the various readings that I have done on the subject I believe that if we vote to leave the EU there will be a sharp jolt throughout the whole economy in particular the banking section.  This will not only impact on general market confidence and settlement but I do suspect this will lead to a limiting of mortgages, a potential increase in interest rates and a knock on effect to the economy as a whole and the housing market in particular.  Whether you are in favour or against Brexit, I don’t think anyone can deny the potential impact on the housing market – at least in the short term.

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