Wed 7 May 2008
Scotland’s family housing shortage will prop up market say agents
Scotland’s residential property market, which last year outperformed all other UK regions, with a capital growth of 13%, according to Knight Frank, is continuing to buck the downward trend in the UK.New homes constructed in Scotland recorded a growth rate of 19.9% over the course of last year. Sales volumes fell by 16% in 2007 and further reductions are expected in 2008 in response to the global credit crisis.
Knight Frank forecasts that Scotland will see house prices grow in value by 1% in 2008 against an average fall of 3% across the rest of the UK.
Liam Bailey, head of residential research at Knight Frank, said: “Scotland’s housing market is proving remarkably robust in the face of the turbulent market conditions affecting the wider UK market. Analysis published in our latest research on the state of the Scottish residential development market (Steadfast Scotland) showed that house prices across the country grew by 13% in 2007, a rate well in excess of the UK average of a little over 5%.
Jonathan Fair, chief executive of Homes for Scotland, the organisation which represents companies building more than 95% of new homes built for sale in Scotland, said: “An overall rise in Scottish house prices, albeit modest, is expected in 2008 – a stark contrast to other parts of the UK and the sensationalist headlines in the national press.
“Taken with the government’s commitment to dramatically increase the number of new homes built in Scotland to 35,000 by 2015, then it’s clear the position in Scotland is much more positive.
”While developments may have experienced a drop in the number of visitors and purchases are taking longer to conclude, there are still high levels of unmet demand within key market segments – particularly family housing – right across Scotland. The industry will continue to meet the high level of demand but we need to ensure first- time buyers and those without access to large deposits are not excluded from getting on and moving up the property ladder through lack of funding. We are therefore calling on lenders to urgently address this issue.”
Posted by Marc Da-Silva
in Homes for Scotland, Jonathan Fair, Knight Frank, Liam Bailey, News on Wed 7 May 2008
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