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Price increases in Scotland indicating the UK property booms next stop

Written by : News | Tue 24th Feb 2015

British homeowners are hesitant to move residence prior to the general election, based on the industry body for sales and letting agents, with the latest data showing seven successive months of dropping interest in new homes.

The month-to-month survey of Members in the Royal Institution of Chartered Surveyors (RICS) indicated that the British housing industry is continuing to cool, with just 2 percent of property professionals predicting prices to improve throughout the next 3 months, its slowest rate since May 2013.

Nonetheless, RICS respondents in Scotland painted a better picture, with 40 percent of agents predicting price increases over the next 3 months.

Throughout the whole of the UK, Scottish members of the residential property organisation reported the largest move in new customer demand which revealed a noticeable increase.

RICS reported a 15 percent uptake of agents registering new enquiries in December to a 34 percent uptake in January, as more individuals began the look for their next residence.

First-time buyers have been spurred on by the new progressive Land and Buildings Transaction Tax (LBTT) which will be launched in April and it is much cheaper compared to the previous stamp duty regime for properties below the £330k mark.

The investigation additionally revealed that 53 percent more agents in Scotland anticipate sales to increase over the next 3 months, compared to an increase of 49 percent from November to December.

“The modifications to stamp duty and pending introduction of LBTT in Scotland are, to varying levels, providing a motivation to first-time purchasers, but there still remains a number of challenges, such as continuous cost limitations, the possible lack of stock and an environment of caution into the run-up to the general election” said Simon Rubinsohn, chief economist at RICS.

Sentiment is at its lowest in London, where 24 percent more estate agents and surveyors thought property prices would continue to steadily fall over the next 3 months, while 19 percent of respondents within the capital think that buyer demand would fall-in the run-up to the election.

Despite a month by which home loan approvals dropped to their lowest levels, agreed sales showed a slight improvement January while the 12-month member forecast is more encouraging, with 48 percent of agents anticipating sales to increase.

By Jim McDougall (originally posted to Flickr as crescent, Langside) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons


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