Scottish Property News

Corum says downturn is bottoming out

"I would suggest that now is a great time to buy," said Kelly. "As far as the banks are concerned, this also has to be a good time to lend, given that the valuations could now be considered sensible."

However, Kelly, whose business's "for sale" signs have become prominent features in well-heeled neighbourhoods throughout the west of Scotland, also told The Herald prices were unlikely to return to the highs of 2007 for another four years.

"The market recovery will most likely be tentative," said Kelly.

"Between 1997 and 2007, the prices in many property markets in Scotland virtually trebled. The normal 10-year trend is for property prices to roughly double.

"Then, over the last six months, the property market witnessed the most speedy and dramatic change in a six-month period that I have ever witnessed in over 22 years within the industry.

"Depending on area, prices lost between 10% and 25%.

"I do believe that latest Nationwide survey that suggested prices in Scotland fell by around 8% was somewhat over-optimistic.

"Nevertheless if we consider the scale and magnitude of the fall in value then on reflection we might consider it necessary in order to rebase values to allow stability and sustainable medium to long-term growth once again."

However, Kelly confirmed that Corum has not escaped unscathed amid the worst property slump in a quarter of a century.

"The volumes are greatly depressed," he said. "At this point I'd say volumes are probably down about 40% on the year.

"Our profits are down, but we're still in profit. I'll say that so far we've come better than the worst possible scenario."

Asked to what extent the company has had to tighten its belt, Kelly added: "Well, we've had no branch closures, but there has been a limited number of layoffs.

"Staff numbers have come down from about 60 last year to 45, but that has been achieved through natural attrition."

Corum was founded in March 2003 with the motto "Just an estate agent" by Kelly, John Davidson, Innes Allan and James Durward, who had been high-fliers at Scottish estate agency chain Slater Hogg & Howison.

In 2007, Kelly confirmed that he and Davidson had acquired the equity stakes of Allan and Durward to assume full control of the company.