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.
Partner – Head of Property