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ScottishToeRag

South Of Scotland Slow Down Underway?

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Decided to sell 18 months ago. Had house valued by regional EA at £275K to £285K in July 2004. Went on the market in August at offers over £275K. Was told to expect offers £290K to £295K. Five viewings in three months. Two offers of £250K. Took the house off the market over winter and put in new bathroom, revamped kitchen. Put it back on market with my own solicitors estate agency in March 2005 at £275K. Absolutely no interest, zero viewings. Re-wrote particulars myself and insisted on new set of photos then reduced price to fixed £250K. Fifteen viewings in five months. Three firm offers. One cheeky cash £225K, another cash £250K and another £260K “when they had an offer on the own house“. Took the £250K cash, thank you very much. Now renting a grand old farmhouse since November. Happy as a pig in sh*t.

Think the acceptance of a 9% hit on original asking price may prove to be one of the most sensible moves I’ve ever made.

Anyway, to the main point of this, my first, post. A similar house (bit bigger but less desirable situation and grounds) 200 yards along the road from us also went on the market in March 2005 at £375K, with local EA and also a national. No viewings. Reduced a couple of months later to £350K. Still no viewings. Reduced in summer to £300K. Zilch!. Now reduced to £265K (stamp duty no go zone) and as far as I am aware still no interest. Reckon that's about a 30% reduction and still not sold yet.

Further anecdotal evidence from a popular village five miles down the road, where I am now renting. Usually if a property comes up for sale here it goes almost right away. One came on the market 2 years ago and had 14 viewings the first weekend and I think around 70 altogether before selling way above the offers over price! Now four or five fairly desirable bungalows are for sale and very little interest. One owner I know personally has had 2 viewings and no sign of an offer after about four months.

The £200K to £300K market in my area appears to be on it's ar*e.

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<snip>

The £200K to £300K market in my area appears to be on it's ar*e.

That's good news! I'm considering moving back "Up North" but have been unhappy at the offers-over lottery.

Looked at some places last summer, but decided to make no offers. Seriously over priced in my view. Salaries up there are not what they are in the SE, yet prices don't seem to reflect that. Add to that the high Council Taxes in Scotland and one must be very careful.

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Anyway, to the main point of this, my first, post. A similar house (bit bigger but less desirable situation and grounds) 200 yards along the road from us also went on the market in March 2005 at £375K, with local EA and also a national. No viewings. Reduced a couple of months later to £350K. Still no viewings. Reduced in summer to £300K. Zilch!. Now reduced to £265K (stamp duty no go zone) and as far as I am aware still no interest. Reckon that's about a 30% reduction and still not sold yet.

Well done on your sale. Is that house on at offers over (OO) or are they doing the pricing dance (OO,to fixed, to lower OO, to lower fixed,...)?

and welcome to the forum. :)

Edited by gone west

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"Well done on your sale. Is that house on at offers over (OO) or are they doing the pricing dance (OO,to fixed, to lower OO, to lower fixed,...)?

and welcome to the forum."

Thank you.

Regards the house for sale, to the best of my recollection, it was offers over £375K, offers over £300K, £300K region and now offers over £265K.

We were even asked our advice on how to achieve a sale (having recently sold ourselves) to which I pointed out the failings of the selling agents marketing approach and also suggested reducing the price again, following which it was lowered to OO £265K. Probably still too high in this market and for the area!

There is another house a few miles out of town which sold for a ridiculously inflated (OO) £235K just over a year ago. It is now back on the market at £285K region. I am afraid they are kidding themselves.

"Amateur" buy to let'ters and speculators are still active for lower priced properties in the area, but they are paying ridiculously high prices, at this lower end of the market. There is no way that this can go on!

One mid-terrace went on the market recently for £125K region and I think it sold for around £140K. It needs complete modernisation and then will probably let for around £400 pm, maybe £500 pm at most. Plain daft, if you ask me.

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hi ScottishToeRag,

i'm wondering if you are scottish borders or D+G based?

Borders myself. Housing just looks ridiculously unsustainable in central borders at moment - almost as ridiculous as the esatate agents ever lengthening definition of what is "within easy commuting distance of edinburgh" - north northumberland anyone? :blink:

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hi ScottishToeRag,

i'm wondering if you are scottish borders or D+G based?

Borders myself. Housing just looks ridiculously unsustainable in central borders at moment - almost as ridiculous as the esatate agents ever lengthening definition of what is "within easy commuting distance of edinburgh" - north northumberland anyone? :blink:

Hi TTBP,

D+G based.

Do keep a close eye on Borders though and agree prices unsustainable. Have viewed several properties Hawick, Jedburgh, Galashiels, Cockburnspath etc. over last couple of years, but thankfully managed to resist temptation to buy at such inflated prices. Personally I saw fall off in demand in the Borders just under a year ago and also quite a lot of properties going under offer and then coming back to the market. Something you tend to associate more with the English system. Also, many properties are now being changed from "offers over" to fixed price (which is what we had to do to get the sale!).

In Central Borders you need to allow for the anticipated "Waverely Line Effect", so if anything near present prices are to be maintained anywhere I reckon it will probably be Galashiels or thereabouts.

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Hi Scottishtoerag

Thanks for being so candid about your situation. Glad you feel taking a hit for 9% was a good idea as I do too. Congrats on selling your house.

I'm also scottish and am eagerly anticipating a slowdown so we can buy a house. I'm a flat owner already and don't give a monkeys if my flat comes down in price because looking at others in my street they're overpriced anyway.

Less debt , less interest and less deposit.

*rubs hands together on hearing your story*

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bit off-topic, but I won't be holding my breath for the waverley line to appear anytime soon (trainline from edinburgh to central borders for those who don't know). Although personally in favour myself, I know one or two folk quite close to it who say planning to date an unmitigated disaster and costs spiralling+++. Expect commuter line to gorebridge and a big park and ride for the rest of us...!

'course that doesn't mean to say local EA's won't use the porposed line as an excuse to ramp prices up <_<

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Been reviewing the South of Scotland and Borders property websites. There seems to be an awful lot of properties going to "fixed price" from OO. Unusual for this part of the country, especially against a media fuelled background of expected increases of up to 12% in rural Scotland for 2006.

One good indicator area is Moffat on the DGSPC website. A year ago (when we were seriously looking in this area) properties were selling like 'hotcakes' as soon as they hit the market. Now they a beginning to stick and several are on "fixed price".

The overall impression that I get is NOT one of a buoyant housing market in the south of Scotland area, but rather one of a serious market slowdown, maybe even on the verge of collapse. Perhaps this is just wishful on my part now that I have sold. Time will tell!

STR

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Been reviewing the South of Scotland and Borders property websites. There seems to be an awful lot of properties going to "fixed price" from OO. Unusual for this part of the country, especially against a media fuelled background of expected increases of up to 12% in rural Scotland for 2006.

One good indicator area is Moffat on the DGSPC website. A year ago (when we were seriously looking in this area) properties were selling like 'hotcakes' as soon as they hit the market. Now they a beginning to stick and several are on "fixed price".

The overall impression that I get is NOT one of a buoyant housing market in the south of Scotland area, but rather one of a serious market slowdown, maybe even on the verge of collapse. Perhaps this is just wishful on my part now that I have sold. Time will tell!

STR

Same up here; many frankly unexceptional properties which were selling like hotcakes before now stuck at pretty unrealistic prices, moving to fixed price or even new lower price. Suspect one or two small developers may get their fingers burnt with cashflow problems - paid a lot for any plot within vague commuting of edinburgh, now can't shift. This ones been on the market for yonks and yonks:

http://www.bspc.co.uk/detailsnew.asp?pRef=4683

- quite nice but too big an ask imho for a house beside busy main road, no extra land etc etc; would perhaps appeal to city type not convinced by a move to the country, but hardly going to apply when the main reason people move to borders from ed is they can't afford prices in edinburgh!

Also note that asking prices for plots which seemed to be previoulsy anything up to infinity, have settled markedly, although still 50-60% up on where they were a few years ago.

I guess also the slowdown elsewhere will impact on South of Scotland. Lets face it not too many £200,000+ houses being bought by some of the poorest paid locals in the UK. Mostly only incomers (like me), often working outside of the area, or retired who can pay these prices.

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Update:

"A similar house (bit bigger but less desirable situation and grounds) 200 yards along the road from us also went on the market in March 2005 at £375K, with local EA and also a national. No viewings. Reduced a couple of months later to £350K. Still no viewings. Reduced in summer to £300K. Zilch!. Now reduced to £265K (stamp duty no go zone) and as far as I am aware still no interest. Reckon that's about a 30% reduction and still not sold yet."

House has now gone "under offer" after nearly 10 months on the market and a 30% reduction. Don't know what the final selling price was. No doubt all will be revealed eventually.

I guess that constitutes a crash to the seller!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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