Demand for new homes is on the up
Housebuilder Persimmon Homes, has reported a strong start to the year, despite economic uncertainty in the market after the Brexit referendum
The demand for new homes in the region continued in the first half of 2016, according to the UK’s leading new homes builder.
Persimmon Homes, which builds homes across Scotland, announced its half-year results today. Nationally legal completions were up six per cent compared to the same period in 2015 with 7,238 homes completed between January 1 and June 30, 2016.
John Cassie, Regional Chairman for Scotland and North West England, which has headquarters in Perth, Glasgow and Edinburgh, said: “Customer interest in our new homes remains high, despite the increased economic uncertainty which the result of the EU Referendum created. In the region, visitor numbers to our developments has increased by around 20 per cent year on year.
“The average selling price of homes increased by six per cent to £206,000, however affordability remains key and excellent mortgages are available including Help to Buy enabling many first time buyers to get onto the housing ladder.
“As a team we remain committed to delivering much needed new homes to our local communities, with new developments built under the names of Persimmon and Charles Church.
“We are currently building in Aberdeen, Dunbar, Johnstone, Dunfermline, Stewarton and Haddington and will shortly be opening developments in Carluke, Cowglen and Muirhead in Glasgow, Kinross, East Calder and Greendykes in Edinburgh. We envisage a good autumn sales season as schools begin their new term.
“Local recruitment remains a focus for the team as we continue to deliver new homes. Alongside this, our charity initiative, Persimmon Community Champions, continues to give money to local projects. To date, the programme has donated over £900,000 to good causes.”
The latest publication of the UK House Price Index (UK HPI) shows that the average price of a property in Scotland in June 2016 was £143,282 an increase of 4.6 per cent on the previous year and an increase of 2.7 per cent when compared to the previous month. This compares to a UK average of £213,927 which was an increase of 8.7 per cent over the year, and an increase of 1.0 per cent when compared to the previous month.
RoS’ director of commercial services, Kenny Crawford, said: “The volume of residential sales in Scotland in April 2016 was 6,665, a decrease of 16.0 per cent on the previous year.
“This also compares with relatively high volumes of 11,017 in March 2016.
“The decrease in April 2016 was anticipated following the high volumes in the preceding month.”
The average price for a new build property in June 2016 was £182,481, an increase of 3.0 per cent on the previous year, while the average price for an existing resold property was £141,743, an increase of 4.9 per cent on the previous year.
The average price for a property purchased by a former owner occupier was £171,657, an increase of 5.5 per cent on the previous year ande average price for property purchased by a first time buyer was £115,877.