House price drop continues but shoots of recovery show

Property: North-east regions record annual falls of between 7% and 11%

House prices in the northeast have plummeted again as the area continues to feel the negative impact of the oil and gas downturn.

New figures, compiled by ASPC and Aberdeen University, reveal the average value of properties in Aberdeen has dropped by nearly 10% when compared with the same period last year.

In Ellon and Stonehaven, property prices have fallen by more than 8%. And, in Inverurie, there has been a near 7% drop while other rural areas have experienced an 11.4% reduction.

Statistics released by Nationwide Building Society have also revealed that house price growth is at its slowest in four years across the UK.

But housing experts say there is cause for some optimism locally, with a slow recovery predicted in the near future.

John McRae, chairman of ASPC’s board of directors, said: “The first quarter figures for 2017 continue to show the effect of the economic situation on our local housing market.

“There are some indications, however, that we are about to commence a slow recovery.

“Firstly, there is anecdotal evidence from member firms that more transactions are taking place and a feeling that the market reached bottom during 2016 and has, since about mid2016, stabilised and, perhaps, slightly improved.”

Mr McRae has also cited an increase in the number of property sales, which have increased by 8%, compared with the same period last year, and 4% since the last quarter of 2016.

He added: “Beyond our own local economic difficulties, colleagues in the rest of Scotland confirm that while their markets are reasonably buoyant, they are noticing a Brexit effect in that there is slightly less activity than they would expect.

“It seems that the general background, economic and political, both nationally and internationally, is slightly depressing confidence.

“It will be interesting to see the second quarter’s figures because, if they continue the recent trend, we may start to feel some optimism there is a slight, but steady, recovery taking place.”

“Indications that we are about to commence a slow recovery”