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Low stock and rising demand push Scottish prices higher

From Property Talk Live on April 7, 2014

A lack of supply of prime properties in Scotland is boosting competition between buyers, and has contributed to a 1.1% rise in prime house prices during the first quarter of 2014.

On an annual basis in the year to March 2014, prices rose by 2.8%. This is the largest annual gain in prices in six years according to Knight Frank.One factor that has put upward pressure on prices is a lack of stock across the market. Tighter stock levels have coincided with an increase in the number of buyers registering their interest in purchasing a prime property in Scotland.

There was a 36.5% rise in the number of new applicants over the three months to March 2014 compared to the same period a year earlier.

While the property markets in key Scottish towns and cities, such as Edinburgh, have been the biggest beneficiaries of this increased demand, there are indications that this is filtering out to the wider prime market.

Indeed, prices rose or were unchanged during the quarter in all of the main Scottish regions, led by increases for homes located in the Scottish Borders, the Central region and the Lothians.

Ran Morgan, head of Knight Frank’s Scottish residential department, said that positive signs are emerging:

“The bulk of sales tend to be concentrated in the sub- £1m price band, although we are seeing a pick-up in interest among buyers for well-presented, large family homes above this level. However, a lack of stock continues to be an issue.

“We have noticed a definite hesitancy on the part of some vendors to bring their homes to market before the result of the Independence Referendum in September 2014 is known.”

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Source: Property Talk Live