House Prices Have Risen! March 2023 - Property Market Report

You might not be expecting this, but March has witnessed a small but significant house price increase across the UK.  It has been the busiest month this year for the property market. 

Prices have had a small rise of 0.1%, whilst this may seem minimal, it does not demonstrate a ‘crash’ in the property market that is repeatedly predicted (September mini budget predicted a 20% crash, Zoopla predicted a 5% fall and Lloyds Bank predicted a drop of around 8%). 

But in reality over the last 12 months, Scotland has seen house prices rise by a full 1%.   It is likely that this year there will be less homes sold, due to financial constraints, but the property market has long been the most reliable source of income for investors.

The highest increases across specific areas in Scotland were: 

Shetland Islands 3.5% (£7,260)

Clackmannanshire 1.4% (£2,400)

North Ayrshire 1.1% (1,850)

An area that did drop was Aberdeen (2.8%) however, this is an important point to note for investors.  Aberdeen currently has a few purchase opportunities because a lot of the stock for sale is being sold for well below the HR (Home Report) Valuation.  Meaning there are still lots of deals available across Scotland right now, if you look in the right places, or have an experienced company to work with, who can guide you.

The Division Dilemma

An issue that is having an impact on the market is the fact that income has become further segregated from house prices.  To explain this further, back in 1986, the average deposit for a property was around £4,000 and income was on average £12,000 (average house price £27,000)

If you compare this to 2021: Average deposit has jumped to around £60,000, with house prices 9 times higher at around £240,000 (but income has only increased by 4.5 times) showing a clear difference and further divide between wages and house prices.

But if you are an investor, again this can work in your favour as this presents you with more opportunities.

Positive News For Spring

If you are contemplating selling your home this year, now is the time.  Research has shown that sellers can obtain a higher selling price at this time of year as it is a more competitive market.  More sellers list their homes in spring and summer because the weather is good, gardens are blooming and outdoor space looks good, outdoor space has become top of many buyers’ wish-lists, and it is a good time to showcase these qualities within your property.  Your property is also more likely to sell ‘quicker’ as well as for a higher price in springtime.

People love to get ready to move in the ‘Spring’ and buyer demand has increased by 6% compared to the same period back in 2019, according to RightMove.  And what is more, your property photographs always look better in the springtime sunshine!

As mortgage rates start to level out again and drop, more purchases are being made, with an increase in first time buyers again.  Mortgage rates have fallen considerably from the peak last year when rates last October were 5.89%, with rates between 4-4.65% right now.

Ready To Go?

If you are ready to buy make sure you carry out due diligence on the proposed property you wish to purchase.  Check out recent sold prices, set up a property alert on RightMove if you are actively searching.

And remember, you might pick up a bargain when buyers are not wanting to commit to a purchase if they are scared of a ‘potential crash’.  In property hotspots where supply is behind the demand and properties are sold at inflated prices, there might be more room for negotiation with both parties.