Scottish Property Market Stagnates as Rest of UK Sees Growth
Average house prices in Scotland hardly rose at all in the year to March, according to the Office of National Statistics.
This is in stark contrast to relatively healthy increases in all other parts of the UK.
The official figures show that the rise in Scotland was just 0.7 per cent.
In England, house prices increased by 4.4%, while Wales and Northern Ireland each experienced a rise of 4.3%.
The UK average was 4.1% and while that seems reasonable under the testing economic conditions, it is lower than in the 12 months to February when the increase was 5.6%
While there is no clear-cut explanation for these declines, these figures offer yet more confirmation that the slowdown in house prices, which began about a year ago, is continuing unabated.
And this has serious consequences for landlords in Scotland, who rely on steadily increasing property prices for long-term profitability.
If you are worried about the value of your property investment, then perhaps we can help.
R&T Property Solutions is currently seeking residential and commercial properties in all parts of Scotland.
Although we are based in Glasgow, where our HQ has been established for over 60 years, we are on the look-out for single flats or portfolios and even land.
We recognise that the buy to let market, regardless of whether the property concerned is in Glasgow, Edinburgh, Aberdeen, Dundee, Stirling, Dumfries, Inverness and all points in between, is no longer nearly attractive a proposition as it once was.
This is due to increased taxation and the introduction of extra charges.
Another factor is political uncertainty which, in Scotland, could last for several more years.
In addition, the advent of build to let, a concept imported from the USA designed to revolutionise the housing market in the UK, will also threaten the viability of landlords who possess a small number of properties.
We’d like to hear from landlords who feel now may be the time to sell up and leave the industry to the big boys.
We’re particularly interested in acquiring regulated tenancies. We’re happy to consider properties in Glasgow, Edinburgh, Stirling, Ayrshire, Aberdeen, Dundee, Inverness, Paisley, or wherever your portfolio or flat may be situated.
We can guarantee an offer within 24 hours of viewing the property and if necessary pay you in cash.
At the same time, we will not unsettle your tenants.
We operate a strict code of practice with regard to tenants, in order to provide you with a hassle-free transaction.
It means we will not disturb tenants or require internal access to carry out a survey. And at all times we will maintain confidentiality.
Meanwhile, as their tax burden increases, over a third of landlords in the UK are looking to cut their annual spending in order to remain profitable, according to latest research by Kent Reliance, a specialist mortgage lender and part of OneSavings Bank plc.
The average landlord now spends £3,632 per year, before tax or mortgage interest, a third of rental income, on basic running costs.
This has jumped by a quarter since the start of 2007, an estimated rise of £714, without factoring in increasing taxes.
This is seen as yet another strong indicator that the traditional buy to let industry is suffering.
“Landlords may seem like an easy target for political point scoring,” said John Eastgate, sales and marketing director of OneSavings Bank.
“Trying to tackle the housing crisis by targeting landlords with punitive taxes is very simple and politically highly palatable, but has unintended consequences.
“One side effect of the recent changes, and rising running costs, will be the professionalisation of the sector as amateur and accidental landlords leave the market,” he added.
Another indicator that all is not well is the data which shows rents on new tenancies in London fell by 1.2% in April compared to the same month a year ago, the first such fall since December 2009.
Throughout the UK rents in April were just 0.4% higher than a year ago, the lowest rental price inflation figure since February 2010.
If you are a small-scale landlord and are concerned about the way your investment is heading, then contact us right away.
We will provide you with a clear-cut and no-nonsense appraisal of your property.
And don’t worry if the building is structurally unsound. We are very happy to take on such investments.
We don’t require a Home Report and will provide you with a fast, impartial and confidential offer.
You are under no obligation to accept our valuation but if you go ahead with the transaction and use one of our panel of solicitors we might be able to pay the fee.
So don’t delay, call R&T Property Solutions today on 0141 636 0521.