News

Market Update

Drops in home ownership and social housing have fuelled growth in Scotland’s private rented sector.

The new Scottish Household Survey 2014 says that the social rented sector declined from 32% of all households in 1999 to 24% last year.

Over the same period, the proportion of households in the private rented sector almost tripled from 5% to 14%.

In 1999, 61% of Scottish households were owner- occupiers. This proportion climbed to 66% in 2007, but has now fallen back to 60%. At the same time the total number of households in Scotland has risen by 11%, which means the numbers switching to private rent is ever greater.

So what has changed? Have the Scots lost their aspirations and ambitions? Or is it uncertainty and the fear, causing people to commit to the long term, coupled with changes to property taxes?

Only history will show, but we still see first time buyer’s properties moving quickly, not always to a first time buyer. Buy to let investors and retirees taking their pension pot and putting it into property is very common.

August as a whole was a very good month for us, selling 23% of our stock. 33% went as holiday/second homes, 33%, first time buyers and 16% moving up and 18% moving down. Nothing sold at the higher end, which worryingly supports the above trends.

Bill Reid. BEM  BA NAEA
Director