Property prices Scotland
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No covid put paid to that. Rush to the countryside and Scotland's relatively cheap prices attracted a lot of city dwellers and folk from down south up north.
I sold in Aberdeen a couple of years back and there were a lot of buyers from Cambridge (?) and London. A couple from Cornwall live along the road from my son.
A friend tried to buy a cottage in rural perthshire. He offered 40% over asking and was 35th
However Humza's campaign against the prosperous is likely to bring some of the second homes back on the market. Maybe even some of the buy to lets as landlords sell up in Scotland and buy in England, and the covid heat has gone away but prices are where they are now.
I sold in Aberdeen a couple of years back and there were a lot of buyers from Cambridge (?) and London. A couple from Cornwall live along the road from my son.
A friend tried to buy a cottage in rural perthshire. He offered 40% over asking and was 35th
However Humza's campaign against the prosperous is likely to bring some of the second homes back on the market. Maybe even some of the buy to lets as landlords sell up in Scotland and buy in England, and the covid heat has gone away but prices are where they are now.
If you find something nice between Glasgow and Stirling for the right price let me know.
Saw a lovely farm house conversion just north of Duntocher for a really good price. On doing a bit of further digging the nice veiw was about to be taken over by a 100 home development.
Saw a lovely farm house conversion just north of Duntocher for a really good price. On doing a bit of further digging the nice veiw was about to be taken over by a 100 home development.
Second homes is the biggest problem. They should be forced to pay a few 100% more council tax on top of the second home tax. It's pricing young families out of the market.No covid put paid to that. Rush to the countryside and Scotland's relatively cheap prices attracted a lot of city dwellers and folk from down south up north.
I sold in Aberdeen a couple of years back and there were a lot of buyers from Cambridge (?) and London. A couple from Cornwall live along the road from my son.
A friend tried to buy a cottage in rural perthshire. He offered 40% over asking and was 35th
However Humza's campaign against the prosperous is likely to bring some of the second homes back on the market. Maybe even some of the buy to lets as landlords sell up in Scotland and buy in England
Why? Will it take the locals better-skilled? No. Will it make employment opportunities better? No. It is just mindless spite for the sake of it.
Spurious. What prices young families out of housing markets where second homes are considered a problem is the combination of their low skills, lack of high-paying, profitable employment and poor infrastructure.
Will it make the locals better skilled? No. It will make the houses more affordable to those who want to live in the villages they grew up in. Instead the houses are full of Air BnB guests or empty for all but a couple of weeks. Having people actually live in these houses means that there may actually be some community, especially in the off season when everyone goes back to their first homes!
You talk about the combination of low skills, lack of high-paying, profitable employment and poor infrastructure (would increasing council tax for second home owners not help?). The factors are a problem but are hugely compounded by the fact that they are now competing with vastly more wealthy people (investing in second and third homes) for what would may have been the first step on the property ladder, or an affordable rental.
Unskilled, semi skilled and skilled workers all need houses too.
Otherwise there will be no-one to come clean the Air BnBs, and serve the guests in the local shop.
Yes it would, as there would be a community not just street upon street of houses empty except in the summer. There may even be a shop. There will certainly be some tradesmen as they will have people who live in the houses and need stuff done. There may be enough people to support a pub or a restaurant. The local schools may not close. Try living in it and you would see the effects.
It is all theoretical of course as the horse has bolted and is not going back in the stable. Doubling council tax is a) a sop and b) a way of raising a paltry amount of tax. At the edges a few people who can't afford it may have to sell but an extra grand isn't going to make much difference to most of the owners.
You have had it. Prices now going back up, interest rates falling. Panic over.
Heard all of that for years. Houses are different to other markets - provided you can keep financing, the last thing you do is sell in a depressed market and lose money you don't have. They have also been an investment class for decades now so capital will flow in propping up the market.
House prices only come down because people can’t buy
Supply and demand always ensures that prices remain at finger tip reach
Supply and demand always ensures that prices remain at finger tip reach
Thar is a circular argument. Outsiders are only vastly more wealthy because those areas do not have decent employment options, a skilled potential workforce or infrastructure.
Which, at any price, are not an option in the absence of profitable work. The delusional fake economics of those who complain about second homes only offer a path to making life worse for locals not better. The problem is not second homes but the fact that the local economy has been dysfunctional prior to the problem of second homes. In Scotland, the propensity of the locals to make self-harming electoral choices only compounds the matter. The problem exists across swathes of England and Wales too, and there is significantly self-inflicted too.
Your point seems to be that they wouldn't have jobs in the absence of second home owners.
I wish it were that simple! It is not.
Some have 2nd homes having inherited same from immediate family bereavement etc. Classic example being left croft and house by relative who has worked the land over generations. Some will take advantage of this opportunity to move back to their homeland. Others will sell their soul to the devil for highest bid with no consideration for 'local young families'. Been there, got the T-shirt.
It is inevitable that money will sway what people do when it comes to the bit. I sold a property (not to the highest bidder) a number of years back. The buyer 'appeared' genuinely interested in the area - but lasted 18mths as it was too hard work!!! How was I to know that it would work out that way. Maybe I should have sold to highest bidder
There are jobs that need doing regardless of the skill level. I don't think that the second home owners we are talking about are going to be teaching assistants, plumbers ect. Not everyone can be surgeons, bankers, and accountants. These people shouldn't be priced out of their villages because the wealthy don't want to go to a hotel.
The way things are going there won't be many locals to make it worse for. There may be issues with the local economies, even prior to the second home issues, but at least housing was more affordable.
Perhaps I should have made it clearer that my tongue was firmly in my cheek.
My sister in law was fortunate enough that someone accepted their bid as they weren't the highest bidder. Now there is another young family in a village in the Cairngorms (near where they grew up)I wish it were that simple! It is not.
Some have 2nd homes having inherited same from immediate family bereavement etc. Classic example being left croft and house by relative who has worked the land over generations. Some will take advantage of this opportunity to move back to their homeland. Others will sell their soul to the devil for highest bid with no consideration for 'local young families'. Been there, got the T-shirt.
It is inevitable that money will sway what people do when it comes to the bit. I sold a property (not to the highest bidder) a number of years back. The buyer 'appeared' genuinely interested in the area - but lasted 18mths as it was too hard work!!! How was I to know that it would work out that way. Maybe I should have sold to highest bidder
It took about a year of slogging away bidding on houses then being out bid by people from outside of Scotland before someone decided to look towards the future of the community.
I'm not talking about unskilled people here either. Good wages and good deposit behind them. The odds were stacked against them, and I have that to look forward to over the next year.
Yep, it is very unfair really. Plus, a lot of those who can afford to outbid are retired and not really going to contribute to the future of the community. In fact, they often become a massive financial drain on the local health services due to health issues that come naturally with age etc...
Heym SR20
Well-Known Member
Scotland, like the rest of the UK has no requirement for residency to buy property. And given security of tenure and our legal system the UK is a very safe place to park money.
So here in Edinburgh property prices are kept very bouyant by overseas money from all over the world. Lots from middle east, hong kong all just parking money. And with weak £ its even more attractive.
We also have the London effect. There are plenty who have got to mid 40’s in London. Probably got to peak of career and not going to make senior partner / director etc. Move back to Scotland, buy a nice townhouse, farmhouse etc for £1m ish. Sell the house in Barnes or Chiswick etc for £2.5m. House paid for and cash in bank covers senior school fees (Edinburgh private day school are 1/3 cost of London or South East), and no tuition fees at University. And then take up consulting type jobs or do something entrepreneurial but actually spend most of your life shooting / playing golf.
So here in Edinburgh property prices are kept very bouyant by overseas money from all over the world. Lots from middle east, hong kong all just parking money. And with weak £ its even more attractive.
We also have the London effect. There are plenty who have got to mid 40’s in London. Probably got to peak of career and not going to make senior partner / director etc. Move back to Scotland, buy a nice townhouse, farmhouse etc for £1m ish. Sell the house in Barnes or Chiswick etc for £2.5m. House paid for and cash in bank covers senior school fees (Edinburgh private day school are 1/3 cost of London or South East), and no tuition fees at University. And then take up consulting type jobs or do something entrepreneurial but actually spend most of your life shooting / playing golf.
The only way to control prices is to prevent market forces from controlling the property scene
Building more will make some difference but the cost of land, materials and labour make most new builds, by definition, unaffordable to many/most
(try building one - as I did 20 years ago)
The moment you artificially control the market (in some form of socialist Shangri-La) you will see an exit of talent and money the like of which hasn’t been seen since the Red Sea was parted
This country would become 4th world
Building more will make some difference but the cost of land, materials and labour make most new builds, by definition, unaffordable to many/most
(try building one - as I did 20 years ago)
The moment you artificially control the market (in some form of socialist Shangri-La) you will see an exit of talent and money the like of which hasn’t been seen since the Red Sea was parted
This country would become 4th world
Heym SR20
Well-Known Member
Fundamentally as I pointed above, UK property prices are subject to global market forces.
However if we look at UK earnings / salaries / wages etc there has been limited growth in such pretty much since the financial crash in 2010.
A sustained period of very low interest rates allowed UK house buyers with a similar monthly expenditure to keep up with the growth in house prices. This meant that with a household combined income of £50k, the £120k property at the end of 1990’s is now a £500k property if you only 1% level of interest rates.
But high interest rates have properties unaffordable.
Meanwhile in the rest of the world including mainland Europe and the US along with many parts of the developing world (India, China, Africa) there has been very big rise in incomes, especially for the middle class and much much more so than in the UK. We are pretty much where we were, whereas many other parts of the world have doubled. And the wealthy middle class is less stable parts of the world happily spend their money on UK property as it is just a safe investment.
The other big factor is that many, many properties sit empty. Indeed there was a recent report that suggested there are more empty properties than those who are looking for properties.
Many such properties are second homes, but many are just kept empty as it’s easier to have an empty property and get the capital gain than dealing with tenants.
However if we look at UK earnings / salaries / wages etc there has been limited growth in such pretty much since the financial crash in 2010.
A sustained period of very low interest rates allowed UK house buyers with a similar monthly expenditure to keep up with the growth in house prices. This meant that with a household combined income of £50k, the £120k property at the end of 1990’s is now a £500k property if you only 1% level of interest rates.
But high interest rates have properties unaffordable.
Meanwhile in the rest of the world including mainland Europe and the US along with many parts of the developing world (India, China, Africa) there has been very big rise in incomes, especially for the middle class and much much more so than in the UK. We are pretty much where we were, whereas many other parts of the world have doubled. And the wealthy middle class is less stable parts of the world happily spend their money on UK property as it is just a safe investment.
The other big factor is that many, many properties sit empty. Indeed there was a recent report that suggested there are more empty properties than those who are looking for properties.
Many such properties are second homes, but many are just kept empty as it’s easier to have an empty property and get the capital gain than dealing with tenants.
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