Tag: housing

Sales over £750k likely to be double those in 2018

Scottish House Price Index from Walker Fraser Steele

  • Average house price in Scotland grows by 9.3% over last 12 months
  • transactions up by 11% on 2019 levels
  • Average house price up 0.2 in November, now stands at £213, 109
  • 31 of 32 Local Authorities continue to see rising average prices over year to end November

Alan Penman, Business Development Manager at Walker Fraser Steele, comments: “The national growth rate in house prices of 9.3% remains exceptionally high. The ongoing ‘race for space’ continues to support demand for properties that offer the room to live and work in a pandemic environment. Working from home has changed where people want to live and the type of property they want to own.

“The subsequent increase in top-end sales last year has been a result of home movers seeking out properties better suited to their updated needs. Additional support was provided through the tax savings from the Land and Buildings Transaction Tax holiday that was available up to the end of March 2021.

“This encouraged the whole market to be more adventurous. Even now, competition among purchasers, a lack of suitable stock, and the continued very low interest rates supporting affordable mortgage debt means that there is currently plenty of good headwind to sustain prices.

“So while rates of growth in house prices may be stabilising in Scotland, the housing market in November still saw an increase in the average house price of £484, which is 0.2% higher than in October.

“Sales volumes from May to November 2021 look roughly on a par with, or slightly ahead of, previous years, perhaps suggesting that the market has now returned to its pre-pandemic transaction levels, but in summary it is fair to say Scottish house prices have enjoyed another strong year often outperforming the UK average.”

Commentary: John Tindale, Acadata Senior Housing Analyst:

“The November housing market Last month we indicated that Scotland’s rate of house price growth was starting to slow, as the annual rate reduced from 13.1% in September to a (revised) rate of 11.5% in October. This month (November), the rate of annual growth continues to reduce – to 9.3% – which represents a modest quickening in the rate of decline from October.

“We would point out, however, that a national growth rate in house prices of 9.3% is exceptionally high, and does not occur particularly frequently. For example, in the 166 months since January 2008, the national growth rate in house prices in Scotland has only exceeded a rate of 9.3% on 10 occasions, with 7 of those occurring during the pandemic in 2021. Historic records would therefore tend to suggest that price growth will slow.

“However, demand for properties with more space remains high. Rightmove reported that on Boxing Day 2021, property searches on their website set new record levels, with Glasgow featuring as the fifth most searched-for location in 2021, while Edinburgh stood in ninth position.

“Competition among prospective buyers for properties remains strong, which is helping to maintain current asking prices. In addition, interest rates remain low on a historic perspective, even if the Bank of England has been dropping hints that rates are likely to move up in the near future.

“In Scotland’s housing market in November, there has been an increase in the average house price of £484 in the month, which is 0.2% higher than in October. The reason for the fall in the annual rate of price growth this month arises from the strong performance in the market twelve months previously, when prices rose in the month of November 2020 by 2.3% – an increase of only 0.2% in November 2021 hence pales into insignificance by comparison.

Figure 1 below shows the movement in annual growth rates over the last 2 years. Although the trendline has a downward track over the final three months of the graph, it ends at a higher level than is currently seen. The answer to the question concerning the direction of travel in house prices in Scotland consequently remains too evenly balanced for a definitive conclusion to be reached.

Transactions analysis

Monthly transaction counts

Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to November 2021, based on RoS (Registers of Scotland) figures for the Date of Entry. (November 2021 figures are based on RoS Application dates.)

The fall in the number of transactions at the onset of the pandemic in March/April 2020 is clearly visible – the March 2020 property sales that actually took place would largely have been agreed prior to the commencement of the first lockdown in Scotland on 24 March 2020. However, what is also clear is the recovery in sales during the summer of 2020, followed by an acceleration from August 2020 to a peak of 13,022 transactions in October 2020 – the highest number in a single month since November 2007.

It can be seen too that sales per month from September 2020 to March 2021 were at higher levels than the previous five years, as the market played ‘catch-up’ with the lost transactions during the spring and early summer months, and also took advantage of the LBTT tax reductions which were on offer from 15 July 2020 to 31 March 2021 (inclusive).

Also noteworthy is the spike in sales in March 2021 – as the tax reduction expiry date approached – as is the fall in sales in April 2021, indicating the extent to which buyers had managed to bring forward their purchases into March 2021 to take advantage of the LBTT tax savings.

Sales volumes from May to November 2021 look roughly on a par with, or slightly ahead of, previous years, perhaps suggesting that the market has now returned to its pre-pandemic transaction levels.

Comparing total sales in 2020 with those of 2019, there was a 14% fall in the overall size of the market. However, looking at the number of transactions for the first eleven months of 2021, and comparing with the same period in 2019 (2020 figures are distorted by the lockdown in the early stages of the pandemic), sales are up by 11%, although this does include the spike in March 2021, which will have enhanced the 2021 totals.

Table 2 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.

Table 2 shows that there have been 977 sales in excess of £750k during the first eleven months of 2021, and we anticipate there will be at least 23 additional sales in November 2021, not yet recorded by the Registers of Scotland and hence not included in the above total. Sales of high-value properties to the end of November 2021 will therefore likely reach 1,000 in number by the end of the month and approach 1,100 by the end of the year. Hence annual transactions of £750k or higher in 2021 will likely double those seen in 2018.

The reasons for this dramatic increase in top-end sales in 2021 are, as previously discussed, partly to do with the change in preference for larger properties. Home movers were thus encouraged to look for premises which better suited their updated needs. But additionally, we should mention the record low interest rates, which made the purchase of a top-end property more affordable, as well as the tax savings associated with the LBTT holiday, available up to the end of March 2021. This encouraged the whole market to be more adventurous in its outlook.

However, even with the additional 23 as yet unrecorded sales being taken into account, November 2021 becomes the second month in a row in which the number of homes purchased having a value of £750k or higher will be lower than that recorded in the same month of the previous year.

Annual change

The average house price in Scotland has increased by some £18,000 – or 9.3% – over the last twelve months, to the end of November. This is a reduction from the £21,800 growth seen to the end of October 2021, and is the second month in succession in which the annual rate of house price growth has slowed, having reached an annual rate of 13.1% in September 2021. In November, Scotland’s growth rate trails Wales’ 9.4% by 0.1%, but in percentage terms is still higher than the nine GOR regions in England.

In November 2021, 31 of the 32 local authority areas in Scotland saw their average prices rise over the previous twelve months. The one area with a price fall compared to one year earlier was Na hEileanan Siar – but low transaction counts on the Islands often cause unexpected results due to the volatility in the price of the small number of sales – there were just 25 transactions in Na h-Eileanan Siar in November, compared to over 700 in both Edinburgh and Glasgow.

The area with the highest annual increase in average house prices in November was Argyll and Bute, where average prices have risen by 17.8% over the year and by 4.6% in the month. Statistics for the month include the sale of the Ferry Inn House on the Rosneath Peninsula.

The Ferry Inn House was once owned by Princess Louise, the daughter of Queen Victoria. It sold for just under £1 million. The data for Argyll and Bute in November also includes the sale of a further £1 million detached property on the outskirts of Oban, with 11 bedrooms, 5 bathrooms and 17 acres of land.

With these two properties having been sold in the month, it is little wonder that average prices in the area have seen such rapid escalation.

Monthly change

In November 2021, Scotland’s average house price in the month rose by some £500, or 0.2%, compared to a fall of £70 in October. The average price of a home in Scotland now stands at £213,109, which sets a new record level for the nation for the eighth time in the last twelve months.

In November, 20 Local Authority areas in Scotland experienced rising prices in the month, with only 12 seeing prices decline. The largest increase in average prices in November, of 10.2%, was in the Shetland Islands, followed by the Orkney Islands at 7.0%, but as indicated above, Scotland’s Island groups tend to see volatile price movements, due to the low number of sales each month.

On the mainland, Inverclyde saw the largest increase in prices in the month, of 4.6%. This increase in average price was helped this month by the sale of a modern detached home, overlooking the Firth of Clyde, in Gourock, for £650k.

On a weight-adjusted basis, which takes into account both the increase in average price and the number of transactions involved, six local authority areas in November were responsible for 54% of the positive movement in Scotland’s average house price. These were, in order of influence, South Lanarkshire, Argyll and Bute, Perth and Kinross, Highland, Falkirk and Moray. At the opposite end of the scale three authorities were responsible for 60% of the fall in prices in the month, being the City of Edinburgh, East Renfrewshire and East Lothian, with the overall rise in prices outweighing the falls by £484.

Peak Prices

Each month, in Table 3 above, we highlight in light blue the local authority areas which have reached a new record in their average house prices. In November there are 14 such authorities, up from 12 in October. In October, it was noticeable in Table 3 that four of the top six local authority areas ranked by price had reached new record levels: however, in November almost the opposite applies, with only one of the top six areas by value having established a new record price. Prices in the other five areas all fell in the month, with semi-detached homes in these areas tending to see the largest falls in average values.

Heat Map

The heat map below shows the rate of house price growth for the 12 months ending November 2021. As reported above, all but one of the 32 local authority areas in Scotland are reporting an increase in their housing values over the last year. The one area with negative growth is Na h-Eileanan Siar, where prices over the year have fallen by -4.6%. The highest increase over the twelve months to November 2021 was in Argyll and Bute at 17.8% with near neighbour East Dunbartonshire being in second place at 16.3%.

Scottish Parliament approves short-term lets legislation

Local authorities to set up licensing schemes

All short-term let properties will require a licence to ensure they are safe and the people providing them are suitable, under legislation approved by the Scottish Parliament.

Local authorities will be required to establish a short-term lets licensing scheme by 1 October 2022, and existing hosts and operators will have until 1 April 2023 to apply for a licence.

The legislation was developed in response to concerns raised by residents and communities about the impact of short-term let properties on their local communities, including noise, antisocial behaviour and the impact on the supply of housing in some areas.

Housing Secretary Shona Robison said: “This legislation is a significant milestone on our path to bringing in an effective system of regulating short-term lets.

“Our licensing scheme will allow local authorities and communities to take action to manage issues more effectively, without unduly curtailing the many benefits of short-term lets to hosts, visitors and the economy.

“We have already introduced legislation allowing councils to establish short-term let control areas and manage numbers of short-term lets. This is the next step to delivering a licensing scheme that will ensure short-term lets are safe and that allowing them to continue to make a positive impact on Scotland’s tourism industry and local economies while meeting the needs of local communities.

“This legislation covers the whole of Scotland, including island and rural communities, and offers flexibility to local authorities in how it is implemented based on local needs and concerns.

“We appreciate the input from tourism bodies, local government, community organisations, residents and others in reaching this point.”

Welcoming the announcement, city council leader Adam McVey said: “This is fantastic news for residents. After our call for this legislative change we worked with the Scottish Government as they consulted on this issue and how the details of a licensing scheme would work.

“I’m really pleased all short term lets will now need a licence making them much easier to control not only in terms of overall impact on our housing supply but also help us deal with any anti-social behaviour and noise issues.

“It’ll mean whole properties being let out as short term lets will need to have ‘change of use’ planning permission before they can be granted a licence. This will help to stop homes being taken out of residential use or being let out when they are unsuitable or unsafe.

“In addition to this, councillors will consider a report next month on whether we should apply to the Scottish Government for Edinburgh to become a ‘short term let control area’. Enforcement of planning legislation is a costly and lengthy process. If approved, many properties being used as short term lets would automatically require to have planning permission in place.”

All short-term let properties will require a licence by July 2024.

ENABLE Scotland launches #MyOwnFrontDoor campaign

ENABLE Scotland launches campaign to address the ‘human rights emergency’ of hundreds of Scots who have learning disabilities being forced to live far away from their families or stuck in hospital. 

#MyOwnFrontDoor calls for urgent change to uphold the human rights of all adults with learning disabilities in Scotland to live in the community of their choice by 2023.

A new campaign launches today to unlock the door for hundreds of adults with learning disabilities to have the right to a home they choose and to live in the community of their choice, as Scotland’s largest member-led charity calls on society to address the “human rights scandal” facing people with learning disabilities in Scotland.

ENABLE Scotland’s latest campaign – #MyOwnFrontDoor – is being led by the charity’s 12,000 strong membership and supporter network to address what it describes as a “level of discrimination that we do not expect and would not expect other people in our society to bear“.

Due to lack of support to live in their own communities close to their loved ones, official data reveals that over 1,000 adults have been sent by Scottish local authorities to live ‘out of area’, meaning not in their home local authority area.  Beyond this, a further 67 people are living in hospital.  22% of these people have been there for more than 10 years.

Despite a Scottish Government report highlighting this issue in 2018, which recommended that better specialist social care support should be available across Scotland to support these individuals to live in the community of their choice, there has been no monitoring of progress, and ENABLE Scotland fear that the situation has deteriorated further.

The campaign is calling for urgent action to end hospital living for people with learning disabilities; and to put immediate plans in place to ensure that all people in delayed discharge or who have been displaced ‘out of area’ are supported to return to live in the home they choose and the community they choose, close to the people they love by 2023.   

Already the charity supports 6,000 people to live independently across Scotland, including some people who were previously living in hospital or other institutional settings for many years, or who have been fighting for their rights to live closer to their families.

People, like Nova, who ENABLE Scotland helped to support to move back to Scotland from England and live in her own house, close to her family. Before ENABLE Scotland got involved, Nova, who is in her early forties, was offered a placement in a care home for the elderly and it took more than a year to support her to get her own keys to her own front door.

Launching the campaign, John Feehan, an adult who has a learning disability and who is an active member of ENABLE Scotland, said: “It can be so hard to speak up for yourself when you have a learning disability.  It is even harder to make people listen.  

“That is why I am speaking out.   It makes me so angry that other people who have a learning disability are stuck in hospital, or being forced to live far away from their families.  This has been going on for too long now.

“Some people think that people who have a learning disability are not able to live in local communities like everyone else.  They think that that it is easier for them to be locked away in hospital, or to live with lots of other people who have a learning disability. 

“That isn’t true.  It is only because the right support is not there – it’s not the person’s fault.  Anyone can live anywhere with the right support.  If they don’t want to be where they are, people need help to get back to live close to their families or to get out of hospital – right now.”

Jan Savage, Director of ENABLE Scotland, said: “This is a human rights emergency. It is a national scandal – hidden in plain sight. People who have a learning disability – brothers, sisters, sons and daughters – are being forced to live far from home, to “live” in hospital, or to live in care settings where they are uncomfortable and unhappy.

“I am sure that people will be shocked to learn about the situation our fellow citizens find themselves in. But they should be reassured that better is possible.

“Clear and decisive action is now required to adopt a ‘Community First’ principle to end the practice of people being sent out of area; to nationally invest in high quality, consistent, specialist social care support to be available in every community; and to stop building new multi bed units for people who have a learning disability. These are not the solution – they perpetuate the problem.

“We cannot wait any longer. People who have learning disabilities are being subjected to a level of discrimination that we would not, and do not, expect other groups in our society to bear.

“We are determined that this campaign will start a movement for change as each and every one of us stand up for the human rights of all people with learning disabilities in 2022. The keys to unlocking their own front door are in our hands.”

John Dalrymple, Director of Radical Visions, said: “Everything we know about the disastrous effects of segregation and exclusion and all the evidence we have about good social care practice argues for an immediate halt to the placement of people in institutions.

“Everything we say we believe about basic humanity, independent living and universal human rights compels us to support campaigns like #myownfrontdoor and ensure that in future no-one is denied a home of their own.”

My-Own-Front-Door-Campaign-ReportDownload

A new campaign report from the charity – My Own Front Door – proposes five key steps that public bodies must take now to unlock the right to an own front door for people who have a learning disability. 

The five keys are:

  • Close all Assessment and Treatment Unit (ATU) beds and end the practice of Scottish citizens being sent out of the country.
  • Immediately implement a Community First principle for the commissioning of support for all adults and children who have a learning disability in Scotland – ending the commissioning of multi bed units.
  • Invest nationally in a Specialist Provider Network to improve local support in every area in Scotland.
  • Maintain a national at-risk register and ensure that everyone identified on this has a plan by 2023 to come home to the community of their choice.
  • Create a national Community Living Panel to ensure oversight and accountability of decision making about individual placements.

As part of this campaign, the charity is offering support and advice to any individual or family who is affected by this issue, and is asking members of the public to raise the issue directly with their local MSPs.

To join the movement, act, share, speak up and get informed, please visit:

www.enable.org.uk/myownfrontdoor.

Go-ahead for pioneering net zero Waterfront housing development

Proposals for a ground-breaking ‘net zero’ housing development, as part of the £1.3bn Granton Waterfront regeneration project in north west Edinburgh, were granted approval by city planners yesterday.

The Granton D1 project is the first Edinburgh Home Demonstrator (EHD) pilot which will see the construction of 75 net zero carbon homes and three retail units in Granton. The project is led by the City of Edinburgh Council with support from construction and academic partners and is part of the Council ambitions to deliver 20,000 affordable homes by 2027.

The project is being undertaken in partnership with CCG (Scotland) Ltd to test this new business model for building affordable, net zero homes.  A large proportion of the construction will be carried out off site in a factory setting reducing the overall  time it takes to build the homes. The homes will also include  zero emissions heating. This will help to reduce their greenhouse gas emissions and support the city’s 2030 net zero target.

The pilot is also supported by a team from Napier University that will analyse the energy performance to validate and inform the net zero carbon strategy for future EHD projects. The EHD project aims to deliver 1,000 affordable net zero carbon homes across the six council areas in the City Region Deal.

With an ambitious target to become a ‘net zero’ city by 2030, both of these developments, alongside the 444-home Western Villages development, will act as a blueprint for future sustainable development and help Scotland to transition towards a greener economy.

Councillor Kate Campbell, Convener for the Housing, Homelessness and Fair Work Committee, said: “Making homes more sustainable will help us to meet our net zero targets, but the most important thing is that our tenants will benefit. With the cost of living rising sharply, making the running costs of homes more affordable will help tenants on low incomes, preventing fuel poverty.

“This pilot, and the learning we hope to take from it, is a really important step for us on our journey to making all of our housing stock more energy efficient, and better for tenants to live in. We have incredibly ambitious plans which form the bedrock of our housing strategy over the next ten years.

“There is a critical need for more affordable homes in Edinburgh and we are responding to that through our commitment to deliver 20,000 social and affordable homes by 2027.”

Councillor Mandy Watt, Vice Convener for the Housing, Homelessness and Fair Work Committee, said: “The Granton D1 development will provide affordable places to live for everyone with over 60% being for social rent.

“The development is part of  the wider Granton Waterfront regeneration – which includes the creation of one of Europe’ s largest new coastal city parks.

“We hope to provide residents and visitors with the chance to reconnect with the city’s waterfront and taken advantage of the new leisure and outdoor experiences that will be on offer – altogether fostering an environment that will benefit everyone’s health, community spirit and wellbeing.”

Councillor Neil Gardiner, Convener for the Planning Committee, said: “This sustainable development is a great addition to our major regeneration of Granton Waterfront to create a coastal town with lots of green and open space.

“It was good to see the committee unanimously backing the project which will provide the area with much needed affordable net zero homes as well retail units providing businesses opportunities and employment locally.”

Calum Murray, CCG (Scotland) Director and Edinburgh Climate Commissioner, said: “The approval of Granton D1 is another important milestone for the City of Edinburgh Council and CCG.

“By working collaboratively alongside our partners, we are pioneering the delivery of affordable, net zero homes in Scotland and the Council is to be congratulated for taking these necessary first steps in delivery of our country’s net zero carbon ambitions.

“CCG is delighted to be leading the design and build of Granton D1 where we will provide a cutting-edge demonstration in the use of fabric first design and construction technology. We look forward to advancing works on-site in the very near future.”

Construction of Granton D1 is expected to begin in Spring 2022.

The wider Granton Waterfront regeneration project which also includes the refurbishment of the Granton Station building and the Granton Gasholder restoration project which is currently lighting up the skyline in a joint project with Edinburgh College. 

The wider proposals will bring over 3000 additional homes and create one of Europe’ s largest coastal city parks linking Granton Harbour to Cramond and Lauriston Castle, reconnecting the city with its waterfront and provide the opportunities for residents and visitors to enjoy spectacular views across the Forth while experiencing enhanced leisure

Solving the housing crisis: council looks to private sector for ideas

The City of Edinburgh Council has this month invited the private sector to bring forward proposals to deliver affordable housing on sites not owned by the Council.

As agreed at the Housing, Homelessness and Fair Work Committee in November, through a Prior Information Notice (PIN), published on the Public Contracts Scotland website, the Council is looking to encourage the private sector, particularly investors, landowners and developers, to consider what ways they could work with the Council to accelerate the ambition to deliver 20,000 affordable homes by 2027.

The PIN focusses on three key areas: purchase of development sites, purchase of completed homes and an opportunity to propose innovative solutions such as leasehold proposals and partnerships.

The PIN also sets out a range of outcomes that the market must consider when putting forward proposals and overall gives the market an opportunity to tell the Council what they can do.

It will also help to inform the next steps, including whether there needs to be a procurement exercise and what that should look like. Establishing a structured approach to market engagement will allow the transparency and assessment of best value that the public sector needs but there is also a desire to make the process as accessible as possible and allow the Council to react to opportunities over the coming years.

Released through Public Contracts Scotland it is open for everyone to take a look, consider the options and register interest in this engagement process. The PIN will close on 31 January 2022.

Housing Convener, Councillor Kate Campbell, said: “Edinburgh needs more affordable homes. We’re doing everything we can through the Council’s own housebuilding programme, and working with housing associations, to provide social and mid-market homes. But we need to look at every possible way to create additional affordable housing – so I am really keen to see what ideas come from the private sector.

“I hope this process will create new and innovative ways to provide even more affordable homes that are so needed in our city.

“By going out to the market we’re asking the question of housing developers or landowners about what they could deliver now. But we’re also inviting them to start thinking about what might be possible, and how they can contribute to helping us deal with one of the biggest challenges facing our city.”

Vice Housing Convener, Councillor Mandy Watt, said: “We are looking forward to seeing what comes back in through this process. It’s an opportunity for the private sector to consider what they might be able to contribute to Edinburgh in terms of affordable housing.

“We expect any proposals submitted to fit with our strategy of providing affordable, good quality, sustainable homes that deliver value for money. We are open to both traditional and innovative ideas which achieve the outcomes that our citizens need.

“Some landowners or developers maybe interested in this but are unfamiliar with this process, so we’d encourage them to come forward and speak to our procurement team to find out more.”

If you have any queries on the PIN or accessing Public Contracts Scotland please contact Kelly Faulds Kelly.faulds@edinburgh.gov.uk

A new deal for tenants: consultation launched

Plans to deliver a new deal for tenants, with stronger rights, greater protections against eviction and access to greener, higher-quality, more affordable housing, have been launched.

The proposals, which are now open to public consultation, aim to deliver a fairer rented sector that meets the needs of tenants and welcomes responsible landlords.

They include:

  • increasing penalties for illegal evictions and stronger enforcement
  • restricting evictions during winter
  • giving tenants greater flexibility to personalise their homes and keep pets
  • developing a national system of rent controls for the private rented sector
  • introducing a new Housing Standard to apply to all homes
  • establishing a private rented sector regulator to uphold these standards and ensure the system is fair for both landlords and tenants
  • setting minimum standards for energy efficiency, making homes cheaper to heat while contributing to Scotland’s climate change targets

The measures form part of the Housing to 2040 strategy, published in March this year, and take forward several commitments made in the co-operation agreement with the Scottish Green Party. The results of the consultation will feed into the final version of the strategy to be published next year, with elements of the proposals put to the Scottish Parliament in a Housing Bill in 2023.

Tenants’ Rights Minister Patrick Harvie said: “Now is the time to do more for people who rent their homes, whether they are renting privately, from the council or from a housing association. Delivering a new deal for tenants is central to our ambitions for a fairer Scotland, tackling child poverty and meeting climate change targets.

“Above all else it will significantly improve the lives of Scotland’s tenants, giving them more stability, more choice over where they live and how they decorate their homes, and the confidence that their home will be of a high quality. At the same time it will recognise the interests of good quality, responsible landlords.  

“We will be working in partnership with landlords, letting agents, tenants and others to deliver this strategy, and we want to gather the broadest range of views. I would encourage anyone with an interest to respond to our consultation.”

Alison Watson, Director of Shelter Scotland, said: “A warm, safe, and permanent home is a right not a privilege for everyone in Scotland. To make this a reality we need to ensure there is enough social housing for everyone who needs it, while strengthening the rights of tenants and empowering people to defend them.

“Shelter Scotland has long called for tenants’ rights and protections, in both the social and private sectors, to be strengthened to make sure no one can be denied their right to a home. Too many renters aren’t aware of their rights or don’t feel confident in enforcing them and that needs to change.

“This is an ambitious strategy, and it offers the chance to mend many aspects of a housing system that is currently failing thousands. We are excited to work with the Scottish Government to develop these ideas and build a better future for housing in Scotland.”

Sally Thomas, Chief Executive of the Scottish Federation of Housing Associations (SFHA), said: “We welcome the Scottish Government’s ambition that all tenants should have access to secure, good quality, affordable homes. We are also pleased the government has acknowledged the unique role housing associations have in delivering these outcomes to people right across Scotland.   

“Fairness, quality and affordability are at the heart of the social housing sector, with our homes built to the highest standards, and tenants regularly engaged in important decisions.  

“This consultation provides an opportunity to inform and shape the detail behind these important principles, not least to provide a clearer definition of affordability. SFHA and our members look forward to working with Scottish Government over the coming months to do this.” 

The consultation closes on 15 April 2022.

Scotland’s October House Price Index from Walker Fraser Steele

Headlines:

  • Average house price in Scotland up by 11.4% over last 12 months
  • Monthly growth rates starting to soften
  • 31 of 32 Local Authorities have rising average prices over year to end October
  • Scotland again outperforming England, Wales & NI
  • £750k+ house sales double that of Jan – Oct 2020

Alan Penman, Business Development Manager at Walker Fraser Steele, comments: “The continued story of Scotland’s successful year for higher priced properties continues.

“The average house price in Scotland has increased by some £21,800 over the last 12 months but our data shows there have been 872 sales over £750k (the point at which the highest rate of Land and Buildings Transaction Tax (LBTT) is applied) during the first ten months of 2021.

“We expect up to 30 additional sales in October 2021, not yet recorded by the Registers of Scotland and so not included in the above total. This would mean sales of these higher-value properties to the end of October 2021 would likely be double in number to those of the first ten months of 2020.

“What we are seeing is the impact of the cut in LBTT earlier in the year, the continuation of low interest rates and cheaper mortgage finance, and the desire of many purchasers during the pandemic to buy bigger properties in the race for space. These factors have meant higher-end properties have played a significant part in the overall growth figure.

“Sales volumes from May to October 2021 are only slightly ahead of previous years, and suggest that the market has now returned to pre-pandemic transaction levels. Nevertheless, the continuing strong performance in October means Scotland had the highest annual rate of house price growth of the four home nations with annual growth at 11.4%, followed by Northern Ireland at 10% (Ulster University Index), Wales at 9.6% and England, without Wales, at 3.9%.”

Commentary: John Tindale, Acadata Senior Housing Analyst

The October housing market:

Scotland’s October housing market is starting to show some signs of slowing in terms of price growth, but it’s necessary to look quite hard for the evidence. We provide four possible indicators:-

Firstly, we can point to an actual reduction in the average house price in October, with the value now standing at £212,551 – but this is only £70 lower than the previous month. However, it does bring to an end a three-month run from July to September 2021, in which average prices rose by an overall £11,000.

Secondly, we can show that in October only some 90 homes in Scotland were sold at a price in excess of £750k, compared to 120 in September. Nevertheless, we could point out that – if we looked at the monthly totals prior to October 2020, ie one year earlier – then 90 sales in a single month having a value over £750k would have set a new record at that time.

Thirdly, the average house price in both Edinburgh and Glasgow fell in October, with the two cities collectively accounting for approximately 25% of all property sales in Scotland. But we could also point out that the same happened in both October 2017 and October 2019, with Scotland’s average house price for those two years showing continued positive growth.

Lastly, and perhaps the most compelling argument is that England and Wales have seen their house price growth start to fall. Figure 1 below compares Scotland’s annual rate of growth, which was at 11.4% in October, with that of England and Wales combined, where rates have fallen to 4.1%. In fact, eight of the nine regions in England saw their annual rates of growth fall in October. (For a comparative Table go to Figure 4 and follow the link.)

In October, Scotland had the highest annual rate of house price growth of the four United Kingdom countries, at 11.4%, with Northern Ireland in second place at 10% (Ulster University Index), followed by Wales at 9.6% and England, without Wales, at 3.9%. England has started to see a reduction in the number of high-value detached properties being sold – perhaps due to a shortage in the level of available stock – resulting in average prices beginning to fall.

Walker-Fraser-Steele-Acadata-House-Price-Index-Scotland-October-2021-003Download

Preventing Homelessness: Scottish Government opens consultation

Views sought on proposed legal duties for public bodies

Health and social care services, children’s services, police and other public bodies will have a legal duty to ‘ask and act’ to prevent homelessness under Scottish Government proposals.

The measures would be part of new laws aimed at preventing homelessness, based on recommendations from an expert group convened by the charity Crisis at the request of the Scottish Government. They would represent the biggest change to Scotland’s homelessness legislation in almost a decade.

Public bodies would have a legal duty to identify anyone at risk of homelessness and either take action themselves or refer on to more appropriate help.

A consultation on the plans, run jointly with COSLA, will give people with experience of homelessness, alongside those from the housing sector, public bodies and others, the chance to share their views and help shape Scotland’s approach to preventing homelessness.

Social Justice Secretary Shona Robison said: “We know that the best way to end homelessness is to prevent it from happening in the first place. These new proposals build on the strong housing rights that already exist in Scotland for people who become homeless.

“Early action should be a shared public responsibility, giving people facing homelessness more choice and control over where they live.

“Homelessness is often a traumatic and unsettling experience that can have a profound impact on the lives of those involved, including children.

“By intervening at an earlier stage, and encouraging services to work together to respond to people’s needs, we can ensure fewer people and families are faced with having to re-build lives affected by homelessness.

“This will further add to our existing ambitious programme of work and investment to ensure everyone has a safe, warm place to call home.”

Jon Sparkes, Chief Executive of Crisis, said: “We strongly support plans for new duties for public bodies to prevent homelessness in Scotland. 

“Scotland has made huge progress in its journey towards ending homelessness in recent years, but while the country has powerful protections in place for people experiencing homelessness, far too many people are being forced to reach crisis point before they get the help they need. 

“Everyone has a role to play in preventing homelessness, and by introducing new duties requiring public services to ask about someone’s housing situation, and offer them the help they need, we can build a truly world leading system of homelessness prevention.” 

Councillor Kelly Parry, COSLA Spokesperson for Community Wellbeing said: “People have a right to a place they can call home. Rough sleeping and sofa surfing is something we have always worked to eliminate.

“We welcome the proposal that the duty to end homelessness will be shared with other public bodies and look forward to being closely engaged in the consultation with other partners”.

Prevention of Homelessness Duties consultation – closes 31 March 2022

Barratt is leading the way in delivering eco-friendly homes

Environmentally-minded buyers can save thousands with new green deals being offered by housebuilder

Barratt Developments Scotland is leading the way in delivering eco-friendly homes to buyers in Scotland, and is well on its way to meeting top energy efficiency standards set out by the Scottish Government.

Latest research by the UK’s largest housebuilder, which owns Barratt and David Wilson homes, shows that all of Barratt’s new homes (100 per cent) are built to a minimum EPC rating of B or above.

This puts Barratt ahead of schedule in meeting the Scottish Government’s Heat in Buildings Strategy, which sets housebuilders an ambitious target to achieve a good standard of energy efficiency, and by 2033 to meet at least an EPC band C standard.

All new homes are given an EPC rating between A and G, with A being the most energy efficient in terms of likely fuel costs and carbon dioxide emissions, but there are currently no legal requirements on a minimum EPC rating for new build homes.

The housebuilder has also announced a new partnership with Halifax bank that now offers green mortgages to environmentally-minded buyers, which means that those purchasing Barratt’s energy-efficient homes could be offered a larger loan with lower interest rates as a consequence of their smaller anticipated energy bills.

Doug McLeod, regional managing director for Barratt Developments in Scotland, believes newly-built properties’ eco credentials could soon be the ultimate selling point for homeowners, in particular first-time buyers struggling to get on the property market. He said: “A new generation of homebuyers could find new homes with green credentials as their only affordable option.

“We know that energy spending can be a major household outgoing and a big part of the consideration when buying a new home. Environmental considerations are also becoming increasingly important for home buyers as we search for ways to create a net zero carbon emission society, and at Barratt Homes we are committed to playing our part by enabling our customers to make greener choices when it comes to buying a new house.

“The affordability of some of the green mortgage deals, combined with the energy efficiency and cheaper running costs of new build homes, are already leading to more and more first-time buyers taking the new build route into home ownership.”

It’s not the first time Barratt has taken a lead for the housebuilding industry.

Last month, Barratt launched a unique flagship zero carbon home concept called the Z House that will be occupied and monitored to assess its performance. And last year, the company announced its commitment to reduce direct carbon emissions by 29 per cent by 2025 and to achieve net zero greenhouse gas emissions in its own operations by 2040.

The winner of Sustainable House Builder of the Year, Barratt will also cut its indirect carbon emissions (those coming from its homes and from its supply chain) by 24 per cent per square metre by 2030. Building lower carbon homes and using more sustainable materials will be a key part of achieving this target.

It will also deliver new zero carbon standard house types from 2030 and ensure that 100 per cent of the electricity that it purchases will be renewable by 2025.

As the country’s largest housebuilder, Doug McLeod, says they have a major role to play in looking after the environment in a sustainable way for future generations, whilst also delivering the homes this country urgently needs.

All new Barratt homes are up to 57 per cent cheaper to run, meaning homeowners could save up to £1,410 on their bills each year compared to an updated Victorian equivalent property.

They come with features such as modern double glazing fitted with argon gas that is designed to capture the sunlight and flood rooms with light, as well as smart technologies which include solar panels, highly efficient boilers, heat recovery, and increased insulation in walls, floors and roofs to make sure that draughts won’t cause winter chills.

David Balfour, account director at New Homes Mortgage Scotland, said: “We are increasingly hearing from our customers that they’re interested in purchasing an energy efficient home as they prioritise environmentally-friendly lifestyles. 

“Green mortgages are most commonly available on new build homes where homebuyers could benefit from cheaper rates and cashback incentives. 

“Eligibility for many of the green mortgage deals is linked to the property’s EPC rating – for example, it might need to be A or B. A large proportion of the UK’s housing stock is old. This is one reason why more and more homeowners and first-time buyers are choosing new build properties that are sold with excellent EPC ratings of B and above.”

Reducing carbon emissions and having the top energy efficiency ratings in new build homes isn’t the only way Barratt is helping to save the planet. They are also making wildlife-friendly places to live through their partnership with RSPB, the country’s largest nature conservation charity.

By 2023 Barratt will further prioritise wildlife on all new developments by creating dedicated spaces for local biodiversity conservation, installing a range of wildlife-friendly features including hedgehog hideaways and swift nesting sites. Beyond 2023 their goal is to have at least 10 per cent more wildlife habitats in and around developments, delivering a clear biodiversity net gain across the country.

Green mortgage case study (Edinburgh)

Graeme Pearson, aged 37, has swapped his draughty Victorian tenement flat with old timber sash and case windows and extremely high ceilings for a three-bed end terrace Barratt home in Edinburgh. He moved in with his partner in November 2021 and is looking forward to a more energy efficient and quick heating home with lower fuel bills.

Graeme, who has benefited from a green mortgage deal with a lower interest rate and cash back deal through Barratt’s partnership with Halifax, said: “My last home was an old Victorian tenement flat that was almost impossible to heat and had draughts everywhere.

“It could be bitterly cold in the winter so my partner and I are very much looking forward to our brand new Barratt home that has plenty of eco credentials to shout about, from below slab insulation to efficient uPVC windows. I also opted for the installation of a convection hob as I believe moving away from gas cooking is an important step towards future sustainability, and we have solar panels on the roof.

“I might consider installing an EV charging point in the future and running a cable across the footway to an adjacent parking space.”

For more information on Barratt’s eco-friendly homes, visit 

www.barratthomes.co.uk.

Scottish developer aims for hole in one with Juniper Green project

An Edinburgh-based property developer has broken ground on a new housing project on the outskirts of the city, with support from Bank of Scotland.

Gallo & Gallo Developments is a family-run business that specialises in developing luxury residential properties across Edinburgh. The firm is run by Riccardo and Mary-Anne Gallo, with Riccardo overseeing the construction process while his wife Mary-Anne specialises in interior design through her own company, Mary-Anne Gallo Interiors.

Since 2008, the business has renovated and developed properties across Edinburgh, helping it achieve an annual turnover of more than £3 million.

Now, the firm is focused on plans for a new five-property development beside Baberton Golf Club in Juniper Green. To facilitate the project, Gallo & Gallo Developments approached Bank of Scotland, securing a seven-figure development funding package to support the build of the new homes.

The new development will feature four ‘upside down’ townhouses, with kitchens and living rooms located on the top floor to take advantage of the views of Edinburgh Castle, while the bedrooms will be located on the lower floors. The former professional golf shop at Baberton Golf Club will also be converted, taking the total number of townhouses to five.

The new homes are designed for families and early retirees and are expected to complete by early Spring 2022.

Gallo & Gallo Developments is also planning to embark on its first venture outside of Edinburgh, with a new multi-unit project in Gullane, East Lothian. This development is expected to go live mid-2022.

Riccardo Gallo, director at Gallo & Gallo Developments, said: “Myself and Mary-Anne have always had a passion for property development and renovation, and we’ve spent more than a decade expanding our footprint here in Edinburgh.

“When we spotted the opportunity in Juniper Green, we knew it would be the perfect next venture for us. While the scale of the development meant it would be our biggest challenge to date, it’s a tremendously exciting project for us. Thanks to Bank of Scotland, we’ve been able to secure the finance required during a time where demand for residential property in the capital continues to grow. 

“That said, this demand is extending with people increasingly keen to live beyond the city limits. This is why we’re hoping to break ground on a new development in Gullane in summer next year and continue to grow our portfolio across the central belt of Scotland.”

Douglas Spowart, relationship director at Bank of Scotland, said: “The latest monthly House Price Report from ESPC has shown that house prices in Edinburgh are still rising as buyer demand continues to outweigh supply.*

“Gallo & Gallo Development’s new project will provide a range of new properties for families in Edinburgh and boost the supply of residential properties in the city.

“We’ll continue to support the business as it continues on its growth journey, and also stand by firms in other sectors as they look to take advantage of new and exciting growth opportunities.”

* https://espc.com/news/post/house-price-report-october-2021