Scotland leads the charge
The great cities of Edinburgh and Glasgow defied the national trend in 2018 with peak price rises, yet the kingdom of the Gaels is still good value, says DEBORAH STONE
JUST AS Edinburgh is the place to go for the best Hogmanay parties this New Year’s Eve, Scotland continues to be the UK’s most intriguing property market. As we say goodbye to 2018, Edinburgh has seen a double digit growth in house prices with 5.5 per cent annual growth across the country compared with 1.1 per cent in England and Wales.
“Setting a new peak average price at a time when many parts of the UK are struggling to maintain prices is a significant show of strength from the Scottish market,” says
Your Move managing director in Scotland Christine Campbell, who adds: “Scotland continues to defy the pessimists.”
A similar spike in prices came in 2015 thanks to a rush to buy before the introduction of
Land And Buildings Transaction Tax, which replaced Stamp Duty Land Tax, but there have been no special circumstances this year.
Alan Penman, business development manager for chartered surveyors firm Walker Fraser Steele, says: “Despite any uncertainty surrounding Brexit, the Scottish market could hardly hope for a better position from which to face whatever challenges the next few months bring.”
The 5.5 per cent annual rise in Scotland comes despite a fall in prices this summer that was followed by a one per cent rise in prices in October. In Edinburgh, prices were up by 1.7 per cent in October alone and 10.1 per cent for the whole year, with Glasgow prices up by 9.1 per cent this year.
Yet while rising prices are good news for those selling properties, they are not so welcome to first-time buyers or even second steppers, so they will be reassured to know that Scotland remains good value.
The average house price stands at £184,569, although this figure is inflated by prices in Edinburgh and Glasgow. It is only slightly higher than in Wales where the Government’s National Statistics unit puts the average at £162,374, while in Northern Ireland the average was £163,621 in the first quarter of 2018. By contrast the average house price in England is now £367,142, which makes the redevelopment of historic Kinross Town Hall, just under 30 miles north of Edinburgh, an appealing proposition for downsizers.
One-bedroom flats start from £180,000 and first-time buyers can use Help To Buy to get them from £153,000, subject to eligibility (01383 739729; kinrosstownhall.co.uk).
Kinross Town Hall is being refurbished to create nine one and two-bedroom apartments that will retain their architectural heritage while also offering the best in modern fixtures and fittings.
The high street building is a blend of Georgian, Victorian and Edwardian architecture; a post office was built around a church steeple in 1841 that is now a clock tower, with the addition of the town hall in
1868 and a library in 1905.
THE BUILDING will retain its period features, including a traditional slate roof and Scottish-made timber sash and case windows but also have new underfloor heating and smart boilers for energy efficiency. “We’re proud that not only are we offering an array of stylish apartments but we’ve been able to restore a historic building and, as such, we’ve integrated the existing war memorials into the building to pay homage to its history,” says site manager Stuart Graham.
Kinross is just north of the Firth of Forth and only six miles from Loch Leven, with walking, bird watching and fishing on offer as well as several top golf courses within easy reach. “It’s one of the most attractive places to live in Scotland so we’re delighted to offer people a rare chance to buy a stunning apartment in the town,” says development manager Simon Leeman.
Scotland’s property price hikes this year have come largely because of low interest rates, good employment figures and a lack of homes on the market. It’s a combination that is true of the rest of the UK but, unlike key areas such as London and the South East, Scotland has come late to the property party.
That won’t affect the traditional celebrations for a happy Hogmanay, though.