Scottish Housing Market Faces Lost Decade

[guitarman001]

I posted this in the Scotland section as well, but who looks there...... this was so good I had to post it here, also. So much for Scotland being different!

http://thescotsman.scotsman.com/news/Scottish-housing-market-faces-39lost.6693783.jp

[Captain Cavey]

I posted this in the Scotland section as well, but who looks there...... this was so good I had to post it here, also. So much for Scotland being different!

http://thescotsman.scotsman.com/news/Scottish-housing-market-faces-39lost.6693783.jp

Same data, but less pessimistic spin by Auntie McPravda (as usual)

Severe weather hits Scottish house sales

The severe weather in December led to a sharp fall in the number of houses being sold in Scotland, according to a report from property surveyors.

The Royal Institution of Chartered Surveyors in Scotland (RICS) said the extreme weather in the run-up to Christmas led to a difficult market.

The average price of houses has also continued to decline in Scotland, although at a lower rate than the UK.

Surveyors said they were hoping for a recovery in the spring.

RICS said that surveyors believed the "lacklustre" activity levels in December were related to the heavy snowfall during the month.

However, the uncertain economic outlook continued to be a concern for some buyers.

The lack of available mortgage finance was also keeping many prospective purchasers out of the market, the report said.

The December Housing Market Survey showed more surveyors reporting prices falling rather than rising.

Demand from new buyers continued to fall in December while the supply of houses in the market also declined, at a quicker rate than the previous month.

The report said that surveyors remained "moderately optimistic" about sales over the coming months.

RICS Scotland's deputy director Sarah Speirs said: "Scotland witnessed the worst of the extreme winter weather conditions and this undoubtedly had an effect on the property market.

"While lack of supply, and more importantly demand continues to impact heavily, surveyor sentiment does appear more positive for the coming months.

"The key issue now is mortgage finance. However, with commentators suggesting lending constraints are unlikely to be eased, it is hard to envisage a meaningful increase in sales levels in the near term."

So clearly the snow was a mere blip in the BBC Scotland McTristrams foolproof plan to retire early on his BTL income

[TheCountOfNowhere]

Needent be the case, whack interest rates up, then let the market fall to realistic prices. From what I see Scotland is more over-priced ( relatively speaking ) to London.

[guitarman001]

Can ordinary people not see... that when the 'experts' say they hope for a rise... that only the EAs and banks gain!?

One of my mates (a civil engineer) was saying how rising prices were good for people like me who were about to get onto the bottom of the ladder. No hope.

[Riedquat]

Can ordinary people not see... that when the 'experts' say they hope for a rise... that only the EAs and banks gain!?

One of my mates (a civil engineer) was saying how rising prices were good for people like me who were about to get onto the bottom of the ladder. No hope.

They are for as long as you can make someone a rung below you pay for it, and take the very long view (i.e. you'll appreciate it when you retire, after having spent most of your life, including the best parts of it, suffering because of it).

[noodle doodle]

Needent be the case, whack interest rates up, then let the market fall to realistic prices. From what I see Scotland is more over-priced ( relatively speaking ) to London.

You're going to have to pick some stonking outliers to qualify that!

The cheapest semi-detached thread shows properties even in edinburgh are about half the price of the south-east n lunnun. Teachers, firefighters, police, admin workers, factory staff, bus drivers, etc don't get paid twice as much down there.

[ccc]

You're going to have to pick some stonking outliers to qualify that!

The cheapest semi-detached thread shows properties even in edinburgh are about half the price of the south-east n lunnun. Teachers, firefighters, police, admin workers, factory staff, bus drivers, etc don't get paid twice as much down there.

There was an interesting thread on here about his subject a while back. Lots of different areas and no doubt that the 'expensive' or 'nicer' areas of London are on a different level.

However it is also rarely stated that you can get a basic flat in a less desirable area of outer London for a similar price to one in Edinburgh.

I think they both seem massively overpriced really !

[mel in w9]

You're going to have to pick some stonking outliers to qualify that!

The cheapest semi-detached thread shows properties even in edinburgh are about half the price of the south-east n lunnun. Teachers, firefighters, police, admin workers, factory staff, bus drivers, etc don't get paid twice as much down there.

It seems to me I have had this "debate" on this board before. Now I am speaking as someone who lived in Edinburgh for many years and now lives in London.

London is FAR more expensive. If we compare similar properties in like for like areas (I mean yes Hackney may be slightly cheaper than the Grange), Edinburgh is roughly half the cost for housing.

In fact we are moving back up to Edinburgh this summer because the difference in what we can buy for 350,000 GBP in Edinburgh compared to London is unbelievable. Fortunately my husband has a job which allows us to live anywhere in the UK.

But for those of still looking to buy in Scotland, the fact that housing prices are falling pretty quickly is good news.

Edited January 18, 2011 by mel in w9

[ccc]

It seems to me I have had this "debate" on this board before. Now I am speaking as someone who lived in Edinburgh for many years and now lives in London.

London is FAR more expensive. If we compare similar properties in like for like areas (I mean yes Hackney may be slightly cheaper than the Grange), Edinburgh is roughly half the cost for housing.

In fact we are moving back up to Edinburgh this summer because the difference in what we can buy for 350,000 GBP in Edinburgh compared to London is unbelievable. Fortunately my husband has a job which allows us to live anywhere in the UK.

But for those of still looking to buy in Scotland, the fact that housing prices are falling pretty quickly is good news.

I would agree if you are talking about nicer houses in nicer areas. Towards the bottom however there is not as much of a gap. But then I suppose this will usually be the case in a bubble.

FTB areas in Edinburgh are however leading the charge down so hopefully this is gonna change.

[Agentimmo]

It seems to me I have had this "debate" on this board before. Now I am speaking as someone who lived in Edinburgh for many years and now lives in London.

London is FAR more expensive. If we compare similar properties in like for like areas (I mean yes Hackney may be slightly cheaper than the Grange), Edinburgh is roughly half the cost for housing.

In fact we are moving back up to Edinburgh this summer because the difference in what we can buy for 350,000 GBP in Edinburgh compared to London is unbelievable. Fortunately my husband has a job which allows us to live anywhere in the UK.

But for those of still looking to buy in Scotland, the fact that housing prices are falling pretty quickly is good news.

You are a very small minority. Earn high wage, save some , then move to lower cost region. Much the same as the UK retirees who moved to the Costas - except for the sunshine

The UK housing bubble is national. The banksters haven't been nice to one area (Scotland) and nasty to another (London). It's all relative. You might think a detached house is good value in Edinburgh at £350K. But for an average waged worker in the city it will be 10-15 times their single salary.

I worked with RBS in Edinburgh years ago. Early 2000s. Even then, most of their better paid workers lived out in the suburbs as the city centre was out of their price bracket.

In the late 80s, a young professional (eg. 24yrs old, like a friend of mine at the time) could by a 1 or 2 bed themselves with a 25yr loan. Long gone days indeed.......