House market bounces back with soaring sales

ADundee property expert says demand for homes is outstripping supply – with more people looking to move to the edge of the city.

Chris Todd, a partner at RSB Lindsays, believes support for first-time buyers is also playing an important part in fuelling the local market as people plan for postpandemic life.

The firm has revealed that its Dundee-based estate agency team completed sales on properties valued at a total of £74.9 million in the past financial year in Tayside – with the number of homes sold locally the same as the previous 12 months, despite the coronavirus lockdown.

The house moving industry was close to dormant for almost three months at the peak of the pandemic last year, due to lockdown restrictions.

But the market bounced back in unprecedented style – with £37.8m worth of sales recorded by the Dundee team between August and November alone.

Mr Todd said: “It has been a quite extraordinary year for the property market in Dundee, given the circumstances in which we have found ourselves.

“Demand is outstripping supply in terms of the number of homes available, which is creating a really competitive environment.

“Many decent-sized family homes are going for a substantial premium over the home report valuation.

“Perhaps that reflects the new working from home pattern that many people are now doing. “Homes with more rooms perhaps for an office

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– and a garden are seen as essential.

“We are also seeing homes in more rural areas around the city selling well. Again, that is perhaps a reflection of people looking to get out of the town and live more rurally as they may not have to commute as much and can get more for their money in general.”

Mr Todd predicts that interest will remain keen across Tayside throughout the spring and summer as people see in reality what impact the further easing of Covid-19 restrictions and new working arrangements will have on their lives.

He added: “The market has been both buoyant and resilient since it effectively reopened at the end of June. What’s essential is that lenders lending.

“Schemes such as the Scottish Government’s First Home Fund and Help to Buy ISAs are getting the first-time buyer market moving which, in turn, fires up the rest of the market.

“As before the pandemic, we are still seeing many offers subject to sale, which has been a fairly new trend over the last year or two.”

RSB Lindsays staff conducting viewings do so within Scottish Government rules over social distancing and hygiene requirements. Guidance documents are shared with viewers and sellers.

Before an in-person viewing can take place, all prospective purchasers first take part in a virtual viewing of a property, generally via a video tour. are still

It should come as no surprise that the property market in Tayside and Fife is booming. No one was able to buy any property at all for three months of last year.

Very few people spent money on a foreign holiday last summer. Nor were people going out to restaurants, cinema and the theatre.

The furlough scheme also means most people have still had income coming in, even if they weren’t working during the pandemic.

This month also sees the return of 95% mortgages, with TSB, Santander, Natwest and Barclays all set to launch products that require just a 5% deposit using the government’s new Help to Buy scheme.

At the same time, interest rates are at historical lows. In short, people haven’t been able to buy houses for a while and now they can.

Many people have seen their bank balances creep up over the pandemic. First time buyers no longer need a huge deposit, and taking out a mortgage has never been cheaper.

Those are all the ingredients for a superheated housing market.

We’re very fortunate in still having property in Tayside and Fife that is very affordable.

Yes, there are hotspots – St Andrews, Broughty Ferry and the East Neuk all cost a premium to live in.

But rural property in Angus is cheap, coastal homes in Leven, Kirkcaldy, Burntisland and Dalgety Bay are reasonable, and you can buy a nice two bedroom flat in Dundee or Perth for well under £100,000.

Of course, buying a home and running a home are two different things.

If home working becomes the norm we need to be able to afford to stay warm all day.

That’s where we really need the Scottish Government to step forward with a massive programme to make our homes better insulated and more efficient.

CHANGING ROOMS: As working from home becomes more prevalent, extra space or an office and garden is seen as essential for many buyers.

Chris Todd of RSB Lindsays.