Market 'not all doom and gloom'

There are hopes the Highlands can shake off the worst effects of the slow down

The housing market in the Highlands has experienced mixed fortunes, according to figures produced by the region's solicitors property centre HSPC.

Its figures for 2009 reflect the national trend of the economy with a slow down in sales.

But in 2008 - for the first year ever - HSPC recorded having more than 2,000 properties on its books.

Here Sarah Woodcock, of HSPC, describes what has happened in the area it covers in the past few months.

The sales value for properties sold through HSPC in 2008 was �207.366m, a 35% drop on 2007's �320.003m.

The number of properties sold also fell in line with this from 1,724 sold in 2007 to 1,174 sold in 2008, a drop of 32%.

It was not all doom and gloom though as HSPC had an increase in number of properties registered over 2008 of 2,028 properties, the first year ever recorded as having more than 2,000 properties and an increase on 2007 of 2%.

The activity in the market showed as fairly healthy during the first quarter of 2008 with registrations up on 2007 and sales also up.

During the second quarter the general economic conditions started to reflect in the property market and the slowdown became apparent in the figures.

The last quarter saw an increase in registrations pre-1 December with sellers registering homes for sale before the new home report legislation was introduced.

The main theme slowing sales - especially first time buyers - seemed to be difficulty getting a mortgage.

This is reflected in the national figures quoted of approximately 75% less mortgages taken out than in 2007.

The Highlands does seem to have shown some traditional resilience as the average house price has fallen but not in line with the national average published by Nationwide at 16%.

The overall figure for average property prices in 2008 recorded by HSPC compared to 2007 has fallen by 5%, this has been an ongoing trend for the last two quarters of 2008 and is also reflected in the years total average.

There is no doubt the market has slowed and that prices and speed of sales have been affected in the Highlands but it has not been hit as hard as other areas of the country.

Although some sellers did avoid the home report by marketing early, home reports are being viewed by some as a distinct advantage to buyers.

HSPC has had an increase in the number of enquirers in the last two weeks with many interested in shared ownership mortgages.

As the volume of properties new to the market and selling are slow due to the time of year and the economic climate, it is hard to judge the impact of the home report introduction and it will probably take a longer period of time to conclude any trends from its effects.

E-mail this to a friend

Printable version