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Regional Property Market Update Autumn 2022: Scotland

Posted on: Thursday, September 22, 2022


Demand Moderation

Over 100,000 sales have taken place each month to date in 2022,according to the Bank of England, a feat achieved only twice in the last fifteen years (2014 and 2017). While demand remains higher than pre-pandemic times, mortgage approvals–considered a forerunner for demand–have eased back in recent months. The Bank of England reports that 63,770 mortgages were approved in July, a 5% fall on the pre-pandemic average (2015–2019). Sales prices currently remains remarkably robust, both Halifax and Nationwide reported a month-on-month rise in August.

At 11.6% annual property price growth in Scotland has strengthened from 11.1% at the start of the year and is currently the strongest of any region across the UK. In many areas, annual property price growth remains in double digits.

Rising Costs 

The cost-of-living crisis is dominating daily news, with consumer confidence in the economy at a historic low (GfK). Inflation has hit double digits, with the Bank of England warning that it is set to rise further. The Bank Rate rate, currently at 1.75%, is likely to rise to over 2% by the end of 2022. While over two-thirds of outstanding mortgage balances and 95% of new approvals are on fixed-rate deals (FCA), for new homeowners and those looking to remortgage, costs are edging up. The impact is likely to be most significant in markets where affordability levels are already stretched.

Homes continue to go under offer quickly, taking an average of just 32 days to sell (Rightmove). Conversely, across the UK housing market the time taken to complete a sale has risen, now in the region of four months, as conveyancing delays remain a significant issue. For buyers seeking to move in by Christmas, the clock is ticking.

Then and Now

The current economic situation is unchartered territory for many homeowners, particularly those not yet born or too young to remember the prolonged periods of double-digit inflation and high interest rates in the 1970s and 1980s. Mortgage lending regulation also means the housing market is in a different state to the Global Financial Crisis. An average of independent forecasts published in August expects the rate of inflation to lower over 2023 and by 2024 to have dipped back to below the Bankof England 2% target. Meanwhile, Bank Rates are not predicted to rise much above 3% (NIESR), still low by historic standards.

 

Contact us

As property prices and demand continue to rise, sell your property with experts in the property industry this autumn. Contact your local Guild Member today.

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Have used Hardings for many year on both personal and commercial property deals. Have always found them to be transparent, honest, authentic, and a pleasure to work with. Will continue to use in the future.

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I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

Jonathon Beresford

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Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

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I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

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Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

Freppell

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We bought and sold through Hardings and can't recommend their professional service enough. The whole Team are really lovely, we were kept informed throughout the process and never had to chase anything.

Natalie Quint

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I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

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We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

Mike B

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What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

C D

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Fantastic customer service and made what could have been stressful a total breeze. Dominic and Louisa were brilliant in helping me and my parents buy and sell our houses - reliable, helpful and thoughtful. Thank you!

Eloise Harris

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Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

Anna Bowen
How Much is Your Property Worth?

How Much is Your Property Worth?

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