Scotland’s monthly transactions rocket 46% in March

Scotland’s monthly transactions rocket 46% in March
Scotland’s property market has proved to be more stable and reliable than England over the last five years and this trend is set to continue

The latest analysis from estate agent, Nested, has highlighted the long term impact of England’s inefficient housing market. When size adjusted and scrutinized next to England’s transaction levels, the Scottish market is streets ahead.

Monthly transactions across Scotland increased by 46% in March 2017, more than double the growth seen across England (18%).

Analysis over the last five years show this is a long term quarterly trend, with the Scottish market consistently ahead when it comes to transaction levels. Given the seasonal fluctuation, a trend line best shows the consistent growth projection. Examination of the trend line reveals that Scottish transactions levels are 8% higher than those in England. When projected to Q2 of this year, this gap widens to 11%.

Matt Robinson, CEO of Nested, comments: “Our analysis clearly shows that Scotland’s property market has proved to be more stable and reliable than England over the last five years and this trend is set to continue. Big events like the EU referendum and stamp duty reform have less of an impact on the number of transactions north of the border than they do here. Why? Because in Scotland your offer is legally binding once accepted, and this provides the certainty and security that buyers are crying out for. In England however, the repercussions of broken property chains are exacerbated by a slowing housing market. The result is an inefficient market which lags behind Scotland even with all macro factors considered equal.”
 
The average transactional tax paid both north and south of the border is 2%[2] which creates an even playing field from a tariff point of view.  Both countries are also united in their wider geo-political and fiscal outlooks which could impact transaction figures. The only divergence between the two which could have a significant bearing on their transaction rates is the efficiency within the Scottish market’s property sales system.


In Scotland, properties are withdrawn from the market once contract negotiations are underway. Because an offer is effectively legally binding, gazumping is incredibly rare so sales are rarely aborted. On the other hand England has a sale fall through rate of over 28% on average, which costs would-be buyers close to £3,000 each, and gazumping and gazundering are a part of the fabric of the property market.  

Matt Robinson continues: “The reality is that the housing market in England is hopelessly inefficient – ‘broken’ by the government’s own admission. People are losing out on their dream home because our system is designed to pit buyers against each other, and an offer is worth nothing until a contract is signed which typically happens weeks after the property is taken off the market.

It’s frustrating that politicians have failed to learn from the success of Scotland’s housing market. Whichever party wins the election, the next government should review the whole system and give people the certainty and confidence they need to move onto and up the ladder.”

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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