Welcome to another Rotter blog. At Wise Property Care we specialise in “building value” back into peoples homes, so obviously when property values are making news headlines it catches my eye.
Like me, you may have noticed that Scottish property prices have been on the up and up lately and this has caused mixed reactions within the industry.
So, is this a sign of a healthy market, or are we headed for a dreaded property price bubble?
Lets see what the experts have to say...
Scottish Property Prices
We have established that prices are increasing but why is this? Many industry insiders believe it is to do with the economy getting back on its feet and the banks becoming more willing to lend.
Donald MacLellan, chairman of Walker Fraser Steele Chartered Surveyors says: “Increased lending and mortgage availability are reaching heights not seen since before the recession as first-time buyers return to the market en masse.”
I reckon first time buyers are part of the reason for this growth due to schemes such as help to buy, which launched in Scotland earlier this year. That said, I reckon first time buyers will be among those hit hardest if prices get much higher.
Who is affected?
Jonathan Harris, director of mortgage broker Anderson Harris, also believes that first time buyers may be victims of a property price boom that they have unwittingly helped create. He says:
"Rising property prices are a concern for buyers, particularly first-timers who have saved hard for a modest deposit and are worried about being priced out further."
My sympathies definitely go out to those trying to get their foot on the property ladder as they always seem to be the worst affected.
Where are property prices the highest?
I noticed the BBC has produced a handy property price calculator for anyone looking for bargain buys or curious as to how their area compares to others with regards to property value. I had a quick play around with it and I was quite surprised to notice that with a £10,000 deposit you would to need make monthly mortgage payments of over £600 to afford a mid-priced three bedroom house anywhere other than south west Scotland. Unsurprisingly, the most expensive place to buy in Scotland remains oil-rich Aberdeen.
Let me know what you think
Of course, my interests are mainly in property preservation rather than property evaluation, so if you want to let me know what you think about the Scottish property market then get in touch on twitter @The_Rotter.
Until next time - Awrabest,