Tag: sales

Walker Fraser Steele: Scottish House Price growth picks up in January

  • Scotland’s monthly rate of 1.2% is highest since August
  • Fife sees £4 million sale
  • Shortage of housing stock continues to support prices
  • Average Scottish house price now at £215,388, monthly rise of 1.2%, 7.6% up annually

Scott Jack, Regional Development Director at Walker Fraser Steele, comments:

“Our report this month shows that the average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January this year. This is an £800 increase over the revised £14,400 growth in prices we witnessed to the end of December last year. Of equal significance is the fact that this heralds a reverse to the slide in the annual rate which had started over the previous three months. While the growth rate here in Scotland trails that of Wales by 1.4%, it is still higher than the average 7.3% in England and Wales overall. The Scottish market is continuing to perform well.

“What we are seeing in this return to growth is that people are still living, moving, buying and selling in the aftermath of the pandemic and the “lifestyle” changes it brought about. Working from Home has encouraged many homebuyers to move to larger premises which can accommodate a different way of living and working. Many have been in search of more outdoor space too – the so-called “Race for Space”. The issue here is that while there is a high demand for such homes, the supply is limited, so there continues to be strong competition for the properties that do come onto the market, with robust price increases as a result.”

Commentary: John Tindale, Acadata Senior Housing Analyst

The January housing market In January 2022, the annual rate of house price growth increased to 7.6%, from 7.3% in December 2021. This represents an increase of £15,200 over the average price of a property at the end of January 2021. The increase in the growth rate brings about a halt to the downturn in rates observed over the previous three months.

Over the last 12 months, there are six Local Authority Areas which between them have accounted for just under 50% of the £15,200 increase in the average price, on a weight-adjusted basis. (A weight adjusted basis takes into account both the change in the authority’s own average price as well as the number of sales involved.) The six areas are – in order of prominence – Fife, the City of Edinburgh, Glasgow City, South Lanarkshire, Highland and West Lothian.

On a monthly basis, prices in January 2022 rose by 1.2%, or £2,572, with Scotland’s average house price now standing at £215,388. This is the highest increase in a month since August 2021, and sets a further record average price for Scotland – providing an additional indication of the general upward pressure on prices.

Figure 1. The annual rate of house price growth in Scotland over the period January 2020 to January 2022 with trendline

So what is causing the ongoing upward movement in prices? In general terms, we are still living with the effects of the pandemic and the “lifestyle” changes this has brought about – in particular the “Work from Home” edict has encouraged many to move to larger premises with outdoor facilities – the so-called “Race for Space”. There is high demand for such homes, but supply is limited, so there continues to be strong competition for the properties that do come onto the market, with resultant price increases.

Last month we showed that the highest rise in property prices over the last ten years had taken place during the pandemic, with the Lothians being the top three authorities in terms of price growth. We suggested this was due to many purchasers looking for a home with plenty of space outside of Edinburgh city centre, but still remaining within reasonable commuting distance of the capital.

Transactions analysis

Monthly transaction counts

Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to January 2022, based on RoS (Registers of Scotland) figures for the Date of Entry. (January 2022 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 13,055 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 transactions lost during the spring and early summer months. It also benefitted from the LBTT tax reductions available from 15 July 2020 to 31 March 2021 (inclusive).

Noteworthy as well 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 December 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 13% fall in the overall size of the market. However, looking at the total number of transactions in 2021 and comparing them to 2019 (2020 figures are distorted by the lockdown in the early stages of the pandemic), sales are up by 10%. 2021 had the highest number of transactions in a year since 2007

Figure 2. The number of sales per month recorded by RoS based on entry date (RoS applications date for January 2022), for the period 2015 – 2022. (Source: Registers of Scotland.)

Scotland transactions of £750k or higher

Table 2. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – January 2022

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 were 54 sales in excess of £750k during January 2022, and we anticipate that this number will increase as further sales for the month are processed by the Registers of Scotland.

In 2021, total sales in excess of, or equal to, £750k amounted to 1,097 in number – and we expect this total to reach 1,100 as RoS continues to process late registrations for the year. This is the largest number of high-value sales that we have recorded in a year.

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. During the pandemic the nation was instructed to “work from home”, which established an appetite for larger properties with areas which could be used as offices and ideally with outdoor facilities – the “race for space”. Home movers and office workers were thus encouraged to look for premises which better suited their updated needs.

The process of moving home was additionally assisted by the existence of 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, which encouraged the whole market to be more adventurous in its outlook.

However, the peak of the “pandemic market” appears to have occurred in September 2021 (see Figures 1 and 2). As a result, it can be seen that in each month subsequent to that date, the number of homes purchased with a value of £750k or above, has been less than that recorded in the same month of the previous year.

Local Authority Analysis

Table 3. Average House Prices in Scotland, by local authority area, comparing January 2021, December 2021 and January 2022

Table 3 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for January 2021, as well as for December 2021 and January 2022, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 3 is based on the local authority area’s average house price for January 2022. Local Authority areas shaded in blue experienced record average house prices in January.

Annual change

The average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January. This is an £800 increase over the revised £14,400 growth in prices seen to the end of December 2021, but importantly stops the slide in the annual rate which had been evident over the previous three months. Scotland’s growth rate now trails the Wales rate of 9.0% by 1.4%, but in percentage terms is still higher than the average 7.3% in England and Wales overall.

In January 2022, 30 of the 32 local authority areas in Scotland saw their average prices rise over the previous twelve months. The two areas with price falls compared to one year earlier were East Renfrewshire and Aberdeen City. In East Renfrewshire, prices of detached homes have fallen from an average £440k in January 2021 to £415k in January 2022. Part of this reduction in the average price of detached homes in East Renfrewshire was due to a fall in the number of homes that sold for more than £750k – there were five such properties purchased in January 2021, but none in January 2022. As we reported last month, this is symptomatic of a general reduction in the purchase of high-value homes in Scotland during the final quarter of 2021, which is now extending into the first month of 2022.

In Aberdeen City the average price of flats has fallen by £5k over the last twelve months. However, in Aberdeen, there is a strong correlation between house prices and the price of crude oil, so we anticipate that property values will begin to increase following the recent dramatic rise in oil prices.

The area with the highest annual increase in average house prices in January 2022 was the Orkney Islands, where values have risen by 19.6% over the year. On the mainland, the highest rise in prices occurred in Fife, where average prices rose by 14.8%. Sales in the month included a magnificent apartment in the Hamilton Grand, overlooking the final hole of the Old St Andrews Golf Course, which changed hands for a reported £4 million. If you are an avid golf fan there is probably no better place in the world to live.

Monthly change

In January 2022, Scotland’s average house price in the month rose by some £2,500, or 1.2%, which is the highest increase of the last five months. The average price of a home in Scotland now stands at £215,388, which sets a new record level for the nation for the eighth time in the last twelve months.

In January, 21 Local Authority areas in Scotland experienced rising prices in the month, compared to 19 in December. The largest increase in average prices in January, of 5.6%, was in Na h-Eileanan Siar. However, as often stated on these pages, Scotland’s Island groups tend to see volatile price movements, due to the low number of sales that take place each month (in this case 18).

On the mainland, West Lothian saw the largest increase in prices in the month, of 4.4%. All property types saw an increase in prices in West Lothian, with the largest contribution to the increase coming from detached homes. The increase in the average price of detached homes was helped this month by the purchase of a resplendent four-bedroom property for £835k, located in Westfield, Bathgate, some fifteen miles to the west of Edinburgh. As mentioned earlier, the Lothians tick all the boxes in terms of ‘pandemic living’, with plenty of space, large properties and a relatively easy commute, if required, into Edinburgh.

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 January there are 15 such authorities, one more than in December. We can also add that Scotland itself has set a new record average price in January 2022 – the first of the year.

Heat Map

The heat map below shows the rate of house price growth for the 12 months ending January 2022. As reported above, all but two of the 32 local authority areas in Scotland are reporting an increase in their house values over the last year. The two areas with negative growth are East Renfrewshire and Aberdeen City, where prices over the year have fallen by -2.5% and -1.4% respectively. The highest increase over the twelve months to January 2022 was in the Orkney Islands at 19.6%, followed by the Shetland Islands at 16.6% – on the mainland it was Fife that was top with price growth of 14.8%.

Comparisons with Scotland

Figure 3. Scotland house prices, compared with England and Wales, Wales, North East and North West for the period January 2005-January 2022

Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, Wales, North East and North West for the period January 2005–January 2022

Scotland’s Seven Cities

Figure 5. Average house prices for Scotland’s seven cities from November 2020–January 202

Figure 6. Average house prices for Scotland’s seven cities January 2022

ENDS

Public urged to protect themselves from online sales scams

The UK government has urged the public to protect themselves from online sales scams through five actionable steps.

The public must be vigilant in protecting themselves from the threat of online scammers during the Boxing Day sales, the Government has urged today (26 December) after a year which saw a record number of cyber attacks and online scams.

Reports to Action Fraud, the national reporting centre for fraud and cyber crime, reveal that almost 100,000 people in the UK have fallen victim to online shopping fraud in the past 13 months – with over £60 million being reported lost, leading to this call to action for the public to take five simple steps to protect themselves and their families from fraudsters.

Traditionally, Boxing Day marks one of the busiest days on the high street for retailers, however in recent years more people have been shopping online – with Barclaycard estimating £2.7 billion was spent online by UK shoppers on Boxing Day 2020, an average of £162 per shopper.

The National Cyber Security Centre (NCSC) is encouraging people to shop online securely by following five actionable steps:

  1. Keeping accounts secure – strong and separate passwords should be used for the most important online accounts, including email, banking or payment accounts (such as PayPal). The NCSC recommends using three random words to create a password. Turning on two-step verification can add an extra layer of protection.
  2. Be aware of emails, text messages or websites that look too good to be true or suspicious – many scammers set up fake messages designed to steal financial and personal information. Members of the public can report suspicious messages to the NCSC via text to 7726 and email to report@phishing.gov.uk.
  3. Choose online retailers carefully – research stores before buying to confirm they are legitimate through trustworthy consumer websites. Some emails or texts about amazing offers may contain links to fake websites. If unsure, don’t use the link.
  4. Use a credit card for online payments if possible – most major credit card providers protect online purchases, and are obliged to refund individuals in certain circumstances.
  5. Only provide enough details to complete a purchase – only fill in the mandatory details on a website when shopping online (often marked with an asterisk).

Chancellor of the Duchy of Lancaster and Minister for Cyber Crime Steve Barclay said: “With a record number of cyber attacks this year, it is crucial we all take some steps to keep ourselves and our families safe from scammers while shopping online, particularly in the Boxing Day sales which have become a firm favourite for fraudsters.

“In the past year, government and police action has seen numerous convictions on cyber fraud, and we should all play our part to stamp out this terrible crime that can ruin lives.”

Paul Maddinson, Director of National Resilience and Strategy at the NCSC said: “Scammers will use any opportunity to try and trick the public and businesses into parting with their money so it’s really important that we all know how to protect ourselves.

“Whilst scams can be convincing, there are practical steps you can take to avoid falling victim to cyber crime which can all be found on the NCSC’s website.”

This warning against online scams comes alongside growing concern about the vulnerability of people’s personal technology. Hackers are targeting individuals’ applications and email accounts, gaining access to personal and financial information and exposing individuals to considerable risk.

As people receive new laptops and smartphones over Christmas, the risks are magnified. The government is also encouraging individuals to ensure that any new devices are protected to keep personal and financial information secure from hackers.However, these dangers are easily avoidable by adopting two key Cyber Aware behaviours:

  • Turning on two-step verification
  • Using three random words to secure your email accounts

For further guidance on how to stay secure online, visit www.cyberaware.gov.uk

Scammers will use Christmas and the New Year to target the public

Christmas is nearly with us, but it is not only the goose getting fat! Scammers, are ready, able, and keen to target the pubic, say leading tax and advisory firm Blick Rothenberg.

Fiona Fernie, a partner at the firm, said: “Christmas and the January sales may be ‘the most wonderful time of the year’, but they are also a time of mixed emotions, the desire to buy presents for friends and family, and anxiety about being able to pay the bills. Scammers are just waiting to take advantage.

“Scamming is a huge issue, which we all need to recognise and take action to mitigate.

“The increase in on-line shopping during the pandemic has provided scammers with an extra opportunity to obtain credit card details.  People have had their online accounts hacked enabling their credit cards to be used which has caused a great deal of distress.”

Fiona said: “There is also increasing evidence of people receiving emails purporting to be from major retailers such as the supermarkets, saying that the individual has been selected to receive some sort of reward for customer loyalty if they just key in their bank details. 

“Such emails play on concerns about the cost of Christmas and can look very much like the real thing, so it pays to be vigilant.”

She added: “It is always sensible to pay for items online using a credit card rather than a debit card and to check statements carefully each month.  Any item which you do not recognise should be reported to the credit card company immediately for investigation. 

“In addition, anybody who receives an email or SMS message suggesting that they are due a reward or owe money should take some basic precautions:

  • Use passphrases with a combination of upper- and lower-case letters, numbers, and symbols when online shopping.
  • Use different phrases for different online accounts.
  • Ensure that two-stage authentication is triggered on all credit cards and online bank accounts – preferably this will include sending a passcode to your mobile phone as well as using the appropriate passphrase.
  • Click on/hover over the “display name” email address from which you have received any email which offers you a reward.  This will show you the full details of the sender and will help to determine whether the email is likely to be from a legitimate source.  For example, I am currently receiving emails purporting to be from Amazon and Aldi but sent from websites and email addresses that are clearly not them.

If this happens to you:

  • Do not reply to the emails or SMSs; 
  • Do not call the phone number listed in an SMS; 
  • Do not click on any links or open any attachments in emails; 
  • Do not visit websites detailed in the messages;
  • Do not provide personal or financial details.”

Fiona said: “The problem does not stop with the order process either. 

“I have heard of several examples of deliveries being made to the doorstep but disappearing before individuals could take them in, so it is clearly sensible to have a reciprocal agreement with neighbours for taking in parcels when the intended recipient is not at home. 

“Don’t let scammers or opportunists spoil your Christmas!”

Average house price in Scotland reaches new record level

  • Average house prices in Scotland reaches new record level – £207,877
  • July sees largest increase in average price in a month since March 2015, up by £6,000
  • Lack of properties on the market helping to support values
  • 2021 has highest number of sales over £750k of last seven years
  • Includes breakdown of 27 local authorities

Alan Penman, Business Development Manager at Walker Fraser Steele, comments:

“The average house price in Scotland at the end of July stands at £207,877, a new record level, having risen by some £5,950, or 2.9%, in the month. This is the largest increase in a month since March 2015 – just prior to the introduction of the Land and Buildings Transaction Tax in Scotland the following month.

“The average house price has increased by some £20,550 – or 11.0% – over the last twelve months. This is 2.5% higher than the 8.5% recorded one month earlier. The annual rate had been slowing over the previous three months from a high in March 2021 of 11.4%. But it is the continuing strong performance of larger properties that is supporting the current growth.

“Sales volumes, which now appear to be running at the levels seen in 2018, also suggest larger properties are supporting higher average prices. Lower transactions and strong prices at the top-end show that demand is exceeding supply with the focus of the market on higher value transactions supported by continuing record low interest rates.

“Combined with the previous tax savings associated with the LBTT holiday, these factors have encouraged the whole market to focus on larger properties and give cause to believe the exceptional performance of larger properties might continue for some months to come.”

Commentary: John Tindale, Acadata Senior Housing Analyst

The July housing market:

Scotland’s average house price at the end of July stands at £207,877, which sets a new record level, having risen by some £5,950, or 2.9%, in the month. This is the largest increase in a month since March 2015, which was just prior to the introduction of the LBTT in Scotland in April 2015.

One of the main reasons for the current upward movement in prices is a result of the lifestyle changes associated with “working from home”, which has brought about a shift in housing preferences to larger properties – with space for home working – rather than commuting to-and-from one’s place of work.

The demand for larger premises continues to be strong, and for some includes moving to Scotland from London, or from other major cities in the UK and beyond. However, the supply of larger homes in Scotland remains thin, with strong competition for those properties that do come onto the market.

Last month we noted that the ending of the LBTT tax holiday in March 2021 made little difference to the high-value end of the housing market, with the number of purchases of £750k plus homes in June 2021 actually exceeding those of March 2021 (see Page 5). We suggested that this was probably due to the level of tax saving being limited to £2,100 in Scotland (compared to a saving of £15,000 in England), which is a relatively small sum in relation to a property costing £750k.

The tax holiday was therefore more likely to influence buyer behaviour at lower price levels, with purchases at £250,000 qualifying for the maximum tax savings. With the number of lower-priced sales falling in July, due to the purchase of such homes having been brought forward into the earlier months of the year, this will have had the effect of raising the average price of the properties that were purchased in the month.

Looking at Figure 1 below – which tracks the average house price in Scotland – we can see that prices reached a mini-peak in March 2021, immediately prior to the ending of the LBTT tax holiday on 1 April 2021. Average prices then started to fall, as buyers of high-value properties reduced in number (see Table 2). However, the reduction in high-value sales only continued through April and May, with June and July seeing a return of the higher-value purchases. This was perhaps assisted by those who had decided to move away from buying properties in England, where the threshold on tax savings had reduced to £250,000 at the end of June.

Transactions analysis

Monthly transaction counts

Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to July 2021, based on RoS (Registers of Scotland) figures for the Date of Entry (Applications Date for July 2021). The fall in the number of transactions for the period March 2020 to August 2020 is clearly visible. However, what is also clearly demonstrated is that the number of sales for each month from September 2020 to March 2021 has surpassed that of the same month in the previous six years.

In addition, the spike in sales that took place in March 2021 – as the tax holiday expiry date approached – is plain, although this total was exceeded by the volume of sales in October and November 2020, when monthly sales during the pandemic reached their peak. Also clear is the fall in sales in April 2021 to levels below those in all previous years except for 2016 and 2020, indicating the extent to which buyers had managed to bring forward their purchases into March 2021 to take advantage of the tax holiday.

For the record, the peak in sales in March 2016 was also tax-related, and came one month ahead of the introduction of the then 3% LBTT surcharge (now 4%) on second homes and buy-to-let properties, which tax was pre-announced to commence from April 2016.

Sales volumes for the period from April 2021 to June 2021 no longer exceed those of previous years, and appear to be roughly on a par with the levels seen in 2018. We will await the “Date of Entry” data for July 2021 before making a comment on this latest month.

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 six 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 figures.

Scotland transactions of £750k or higher

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 537 sales in excess of £750k during the first seven months of 2021. This total is greater than the first seven months of each of the previous six years, beating the 363 transactions seen in 2015 – which had the second highest total to the end of July – by some 174 sales. Clearly the expectation for the whole twelve months of 2021 is that high-value sales will be far in excess of all previous years.

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. But additionally we should mention the record low interest rates, which make the purchase of a top-end property more affordable, as well as the tax savings associated with the LBTT holiday, which encouraged the whole market to be more adventurous in its outlook.

There are perhaps two other features of interest that can be observed in Table 2. The first, also previously mentioned, is that sales of high-value properties in June 2021 exceeded those of March 2021, despite the earlier month having the advantage of the tax holiday. The second is that in every month in 2021 (except March) the number of high-value sales has exceeded those of the same month in the previous six years.

Perhaps while discussing high value homes we should also point out that one tends to get more “bang for one’s buck” in Scotland than in England. For example, the recent purchase of a £1 million home in the Scottish Borders included 5 bedrooms, 2.8 acres of garden grounds and 5 acres of grazing paddock. In London £1 million will, in some boroughs, enable you to purchase a three bedroomed Victorian terrace, with minimal garden space. It is therefore little wonder that some Londoners are looking to move to Scotland, if the workplace allows.

Local Authority Analysis

Annual change

The average house price in Scotland has increased by some £20,550 – or 11.0% – over the last twelve months, to the end of July. This is 2.5% higher than the 8.5% recorded one month earlier, and comes as something of a surprise, given that the annual rate had been slowing over the previous three months from a high in March 2021 of 11.4%. We had assumed that since the ending of the LBTT holiday in March 2021 prices would begin to fall gently, but it would appear that the shift in housing preferences for larger properties – with space for home working – rather than commuting to places of work, continues to affect the current housing market.

In July 2021, all bar one of the 32 local authorities in Scotland have seen their average prices rise over the previous twelve months – the one authority not to have done so being Na h-Eileanan Siar, where only 25 sales took place in July 2020. The Scottish government were discouraging house buyers from visiting the Islands during the early stages of the pandemic – so average prices on the Islands were subject to dramatic change, due to the low numbers of transactions involved.

On the mainland, the highest annual July increase in prices occurred in the Scottish Borders, up by 23.2%. In the Scottish Borders, all property types have seen prices rise over the last year, with the largest increase being in detached homes, up from an average £285k in July 2020 to £370k one year later. The rise in average prices in July 2021 has been helped by the sale of six properties in excess of £750k, compared to 11 such properties being sold during the whole of 2020.

Monthly change

In July 2021, Scotland’s average house price rose by some £5,950, or 2.9%, and now stands at £207,877. This rise is the largest gain in a single month since the £15,316 increase seen in March 2015, immediately prior to the introduction of the Land and Buildings Transaction Tax (LBTT), which came into force in Scotland on 1 April 2015.

Prices rose in July 2021 in 28 of the 32 Local Authority areas in Scotland, indicating a near universal increase in prices across the country. The largest increase in July, of 9.9%, was seen in the Orkney Islands – but this was a reflection of the small number of transactions that took place on the Islands, with low sales volumes (32 in July) often being associated with high percentage changes in average prices.

On a weight-adjusted basis, which takes into account both the increase in average price and the number of transactions involved, 5 local authority areas in July were responsible for 52% of the positive movement in Scotland’s average house price. The five areas concerned, in order of influence, were Glasgow City, the City of Edinburgh, North Lanarkshire, East Lothian and South Lanarkshire.

Some analysts have been suggesting that, in the pandemic, it is isolated rural areas that have benefitted most from the lifestyle changes associated with the move to “work from home”. However, looking at the five authorities identified as having the most influence on the price change in July, one would not necessarily draw this conclusion. It would appear that the two largest cities in Scotland are responsible for the movement of over half the change in average house prices, either in their own right, or through their influence over their major commuting hinterlands.

Meanwhile, the Highland local authority area, which one might assume is mostly rural by disposition and should therefore be attracting new residents, has seen its average house price fall by -0.5% in July. As we reported last month, all property types in the Highland area have seen prices fall, with the price of terraces dropping from £155k in June to £134k in July. There has also been a decline in the number of detached properties sold in the month. For example, in the Highland area in March 2021 there were 171 detached properties sold in the month, contrasting with 84 detached homes being sold there in July.

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 July there are 12 such authorities, up from 4 local authorities in June, as well as Scotland’s own average price, which has also reached a new record level.

Heat Map

The heat map below shows the rate of house price growth for the 12 months ending July 2021. All bar one of the 32 local authority areas are reporting an increase in their housing values over the last year, the exception being Na h-Eileanan Siar.

Comparisons with Scotland

Surviving the January sales

New Year bargain hunters have been given 11 top tips for grabbing the best deals in the sales.

Making a list before hitting the shops, using cash instead of cards and shopping on a full tummy are among the tips from the shopping experts at NetVoucherCodes.co.uk.

They say by following a few simple rules shoppers could grab some great deals, but a few false moves and those bargains may not look quite so good later in the day.

Simple tips like planning ahead, questioning whether the item is really needed and taking regular stops to refuel are among the advice given.

A spokesperson from NetVoucherCodes.co.uk said: “Keeping a clear head when shopping is important so you don’t get sucked into fake bargains.

“You want to make sure your shopping trip is enjoyable and satisfying, there’s nothing worse than coming home feeling exhausted, regretting your buys and broke after a long day.

“Many shoppers don’t end up coming home with exactly what they set out to get, so we’ve compiled a list of the best tips for a smooth, satisfying shopping experience so that you can enjoy the New Year’s sales and grab yourself some real bargains.”

Here are NetVoucherCodes.co.uk top sales shopping tips:

1. Check opening times

Before you head off sales shopping, check the opening times. Some stores open much earlier than others. Leave it until mid-morning and you may miss the best of the bargains.

2. Cash NOT card

Avoid using debit or credit cards – it’s far too easy to get carried away with them. Instead, withdraw a maximum spending value in cash. This is more likely to curb spending and help you avoid impulse buying.

3. Fill up

Make sure you have a decent breakfast before you head out shopping so you’re full of energy and ready to make a strong start. Make sure you refuel throughout the day.

4. Use public transport

Rather than battle for a parking space, take the train or bus when you head out shopping. It’ll be cheaper, easier and you won’t have the stress of fighting the crowds to get a space.

5. Do I really need it?

Before you buy, question whether you really need the item. It may have 50% off but if it’s just going to sit in a cupboard or in your wardrobe, then it’s a complete waste of money.

6. Make a plan of attack

There’s nothing wrong with doing a little forward planning to help save time and stress. Make a wish list of what you really want by having a browse online.

7. Bag up

Take plenty of big sturdy bags to help you carry your shopping load. There’s nothing worse than having lots of small plastic bag handles cutting into your forearms and fingers all day.

8. Don’t worry about other shoppers

Don’t get carried away with the crowds, if you have your goals in mind – ensure you stay on track, otherwise you may end up not finishing what you set out to do before closing time.

9. Have a breather

Take regular breaks to collect yourself, stay fed and hydrated and use these little stops to remind yourself of your wish list.

10. Learn the returns

Make sure you have a handle on the returns policy and check if you can return before you purchase.

11. Don’t get roped in

Sales are a great opportunity for many shops to rope customers into signing up to sneaky credit card schemes. These encourage over-spending and what they don’t tell you is that you’ll still be paying for the items months after buying them. THINK before you sign.

British Retail Consortium: spending languishes in July

Covering the four weeks 30 June – 27 July 2019

  • On a total basis, sales increased by 0.3% in July, against an increase of 1.6% in July 2018. This is the lowest figure recorded for the month of July since our records began in 1995 and comes after the worst June on records. This is above the 3-month average of -1.3% but below the 12-month average of 0.5%. This is the lowest 12-month average on records.
  • UK retail sales increased by 0.1% on a Like-for-like basis from July 2018, when they had increased 0.5% from the preceding year. This is above the 3-month and 12-month averages of -1.5% and -0.2% respectively.
  • Over the three months to July, In-store sales of Non-Food items declined 4.1% on a Total basis and 4.0% on a Like-for-like basis. This is worse than the 12-month Total average decline of 2.6%.
  • Over the three months to July, Food sales decreased 1.0% on a Like-for-like basis and 0.3% on a Total basis. This is below the 12-month Total average growth of 1.8% and the lowest 3-month average since December 2014, excluding Easter distortions.
  • Over the three-months to July, Non-Food retail sales in the UK decreased by 2.0% on a like-for-like basis and 2.1% on a Total basis. This is below the 12-month Total average decrease of 0.6%. For the month of July, Non-Food was in growth year-on-year.
  • Online sales of Non-Food products grew 3.7% in July, against a growth of 7.5% in July 2018. The 3-month and 12-month average growths were 3.1% and 4.7% respectively.
  • Non-Food Online penetration rate increased from 28.4% in July 2018 to 29.8% last month.

Helen Dickinson OBE, Chief Executive | British Retail Consortium

“While retailers will welcome the return to growth, it has nonetheless been a punishing few months for the industry. The combination of slow real wage growth and Brexit uncertainty has left consumer spending languishing with the 12-month average total sales falling to a new low of just 0.5%.

Whereas last year’s glorious sunshine and World Cup Finals led to strong consumer demand over the summer, this year has been weak in comparison, with both June and July showing the lowest sales on record for their respective months. And it is not just high streets that are suffering, with Non-food online growth also one percentage point below the 12-month average.

“The challenging retail environment is taking its toll on many high street brands who must contend with rising import costs, a multitude of public policy costs, and ever higher business rates. A coherent strategy for retail is needed. The Government should freeze future business rates rises and fix the appeals system before embarking on a wholesale reform of this broken tax system.”

Paul Martin, UK Head of Retail | KPMG

“The UK may have had record temperatures in July, but retail sales were far from record-breaking at just 0.3% growth. While any growth is welcome after two months of decline, it’s clear that most players need more than sunshine to get back on their feet.

“Given the weather it’s unsurprising that shoppers reconsidered their wardrobe, but it was online retailers who benefitted most once again. Online non-food sales overall actually grew by only 3.7%, which is considerably lower than previous years. Meanwhile, another category which has historically benefitted from the good weather is grocery, but even here sales are lacklustre, which is a cause for concern.

“With consumer confidence holding up in the face of prolonged Brexit uncertainly, shoppers are notably disengaged overall. The pressure continues to build between online and physical offerings, costs continues to rise and the demands of consumers continue to grow. The key question is, who can handle the heat?”

Food & Drink sector performance | Susan Barratt, CEO | IGD

“Success for England’s big sporting teams tends to provide a boost for food and drink sales, so the men’s cricket and the women’s football teams were both good for business in June. However, the same applied last year with similar sporting success, and the year-on-year comparison was a draw with flat food and grocery sales. 

“There has been some inflation though, meaning a drop in real terms and the underlying conditions are tight for food retailers.”

Top tips for viewings when selling your property

If you want to get the highest price for your property, it’s important to do everything you can to ensure that your home is shown in the best possible light. David Marshall, Operations Director with Warners Solicitors and Estate Agents, shares his top five tips for maximum impact:

First Impressions Count

Just because it’s a cliché doesn’t mean it’s not true. Buying a new home is an emotional journey for most people so it’s vital that your property makes a great first impression. This can begin before people even walk through the front door.

Make sure that your front garden is tidy, the lawn mowed and, if possible, move any bins at the front of property out of sight. If you stay in a flat and the main door is looking a little worn, it can be worth freshening this up with a new coat of paint prior to going onto the market too.

Creating a good first impression will put viewers in a positive frame of mind when they walk into your property.

Declutter

You would be amazed at how much the space in your property can be opened up by having a good old-fashioned declutter. Whether it’s the old DVD collection or unnecessary furniture, now is the time to move these things out of sight.

You can use storage space in the property, ask friends and relatives to help out or put some items into storage. If there are things that you wouldn’t plan on taking with you when you move to your new home it may make more sense to just part ways with them now.

By opening up the space in your property and letting natural light in you can really increase its appeal while allowing buyers to picture themselves living in your home.

A Touch of Sparkle

Giving your home a thorough polish – mirrors, surfaces and even skirting boards – before viewers come round can make a huge difference in showing that the property is clean, fresh and well looked after. Don’t forget taps and chrome fittings in the bathrooms and kitchen to make sure your home is sparkling.

Let An Agent Handle Viewings

Depending on your circumstances, it can make a lot of sense to have an agent handle your viewings for you. If you work nine to five, this will make it easier to accommodate buyers who can only view during the day as well as removing the hassle of showing people round your home.

Selling and showcasing homes is what a good agent does every day so they will be able to make sure that viewers’ details are captured and their questions answered while still allowing them to feel at ease as they view your home.

Viewers are also more likely to be completely open with feedback if they are speaking to an agent than if they are speaking to the owner of a property. If there is something that’s putting potential buyers off you’ll need this honest feedback in order to address any issues.

Don’t Get Put On The Spot

Finally, if you would prefer to show viewers round the property yourself, don’t let yourself get put on the spot when it comes to the price that you are looking for. For most people, the simple truth is that you are looking to achieve the best price for your home.

Politely let the viewer know that you are happy to look at offers and that if they are interested, they should speak to their solicitor and get an offer over to your selling agent. That will allow your negotiator to deal with all interested parties and help ensure that you get the best result from your sale.

Warners Solicitors and Estate Agents is one of Edinburgh’s leading estate agents, operating three property centres throughout the city.

For more information on Warners Solicitors and Estate Agents, visit www.warnersllp.com