Shepherd expresses optimism for North of Scotland’s housing market in 2024
Shepherd Chartered Surveyors has expressed a note of optimism for the outlook for the North of Scotland’s housing market in 2024.
While the latest Royal Institution of Chartered Surveyors (RICS) residential market survey saw both lower demand and supply in the Scottish property market , resulting in a fall in the number of house sales and prices, the expectations for both prices and sales over the course of 2024 have improved with mounting evidence of the potential for base rate cuts and an already apparent mortgage price war giving grounds for optimism.
Stuart Dunne, managing partner in Shepherd’s Aberdeen office, said: “The latest RICS residential market survey shows an increase where 22 per cent more respondents than in the previous RICS survey in Scotland expect prices to be higher in a year’s time and 10 per cent more of the respondents expect the number of sales to be higher.
“The property market within Aberdeenshire has been performing fairly over the last year with prices generally static. Since the mini budget in September 2022 and the intervening period where interest rates were rising as well as inflation, the market cooled with fewer transactions taking place. Interest rates look like they have now peaked, inflation is falling and, as a result, we expect more transactions over the coming year.
“It should be noted that property prices in Aberdeenshire are low in comparison to other parts of Scotland, have been generally stable and offer good value for money which should give buyers confidence. As such, we are cautiously optimistic about the prospects for Scotland’s housing market for the year ahead.”
Commenting on the housing market in Inverness, Gregor Simpson, partner, added: “I’m optimistic for the year ahead with the main driver being the Inverness and Cromarty Firth Green Freeport which is beginning to get traction and it is estimated that this could ultimately create 10,000 jobs in and around Inverness, Ardersier and Invergordon/Nigg.
“The market still remains reasonably buoyant particularly at a higher level where purchasers may not be feeling the impacts of higher interest rates compared to the first-time buyers and those at a higher LTV (loan-to-value) ratio.
“Changes to the way people can now work has also helped the Highlands and Islands with many people relocating since Covid, provided of course that they have a good broadband connection.
“A number of investors, however, seem to be getting out of the property game largely due to tax implications including the phasing out of Capital Gains Tax allowance. This is fuelling high rental levels due to a real lack of supply in the market.”
ENDS
For further information please contact Stuart Dunne on tel 01224 202833
