Sales on the rise while prices fall

39. Sales on the rise while prices fall
Mark Twain’s quip about lies, damned lies and statistics could have a ring of truth given the various factors that continue to skew property market statistical reports.

Most recently it was Registers of Scotland, whose figures for January to March 2016 reveal the volume of property sales rose 18.2 per cent compared to the same period last year, while prices fell by 8.4 per cent bringing the average house price in Scotland to £159,198.

But these are extraordinary times, with this point last year seeing a huge hike in high value property sales prior to the introduction of LBTT, while the same period this year saw a rush to purchase second/investment properties before the three per cent LBTT surcharge took effect.

The latter could now see the private rental sector entering unchartered territory as landlords have the double whammy of the three per cent surcharge and consequences of the Private Tenancies Bill.

Statistics, at best, are only a guide and right now and arguably for a while yet, an unreliable one at that. House prices are falling? That depends where you are and who you speak to and in many popular suburbs at present, the lack of supply is resulting in multiple offers and occasionally driving house prices sky high.

Source: heraldscotland

Leave a Reply