A rise in Scottish house sales points to an improvement in consumer confidence but mortgage lending is the main barrier to a full recovery in the housing market, according to a report.
A study found residential property sales were 7.7% higher in the second quarter of this year compared with the same period in 2012: a rise powered by sales to first-time buyers.
While a minor fall in house prices was recorded over April, May and June, prices overall are up by 1.2% on December’s levels. The latest LSL/Acadametrics Scotland house price index said the housing market was “bearing up well” and there were some green shoots of recovery, but they cautioned that sales levels in the first half of 2013 remain low compared with 2007 totals.
More interest from first-time buyers is needed to make sure the housing market gets fully back on track, they said.
It found the average house price in Scotland in June was £143,181, down £627 on May’s total but up £1,648 from December’s figure.
June was the third month in succession where there was a minor fall in house prices. The report showed the period from June last year to June this year could be split into three periods. The first was one of a small but almost constant decline in prices to the end of 2012.
January to March witnessed an upturn in prices of 1.8% over the three-month period.
It was followed by three months of gentle decline, with the average house price down by £840 over this period. Over the whole year, prices were down 1.6%.
When the volume of house sales was analysed, it appeared to be a stronger picture.
Transaction numbers increased by 7.7% between the second quarter of 2012 and the same period of this year, “suggesting an improvement in consumer confidence”.
Source: Herald Scotland