In this two-minute read, we look at the reasons behind the incredibly high levels of activity in the Scottish property market.
Earlier this month saw the UK record its highest temperature in 17 years.
And it’s not just the weather that’s been red-hot.
The property market in Scotland is going through a blisteringly busy period.
At Scottish Property Centre, we’re seeing a surge in the number of buyers seeking property locally.
Unprecedented was an often-used word to describe the lockdown experience we all went through. And it feels like an appropriate word to use, especially when describing what’s happening in terms of people wanting to move.
But why is this happening?
Well, we think it’s down to three things. To help people remember them, we’ve called them the 3D effect.
Desire – One of the legacies of lockdown was that many people realised they wanted more from their current home. All that time spent indoors has led to families and individuals rethinking about where, and how, they live. This has accelerated many people’s decision-making processes. Rather than wait a couple of years to move, many feel now is the right time. We’ve heard this from several buyers and sellers who are concluding that life’s too short to delay big decisions.
Demand – When the property market in Scotland went into lockdown it meant all moves were on hold. This caused a ‘blockage’ in the property selling/buying pipe. The relaxation of lockdown and reopening of the property market has seen a surge in demand. And where there is a demand for homes, it creates an increase in their value. So, many homeowners have realised now is a great time to make the most from their biggest tax-free asset. The saying ‘making hay while the sun shines’ springs to mind.
Deposits – The Land and Buildings Transaction Tax (LBTT) threshold increasing from £145,000 to £250,000 (until 31 March 2021) in Scotland means more people now have a larger deposit, making mortgages more available and in many cases increasingly affordable.
On their own, the 3Ds would not have caused such a surge in activity.
But the three have come together in the same period to create the perfect climate for a red-hot property market.
If you are interested in having a chat about what this could mean to you, get in touch with us.