The latest Rightmove House Price Index for August 2020 shows that July was the busiest month in the last decade for the property market.
Since the property market reopened in Scotland on June 29th, there has been something of a mini-boom in stock coming to market and hungry buyers clambering for a new home. The most recent figures from Rightmove show that the number of agreed sales is up almost 60 % against the same period in 2019.
Scotland also set a record high for asking prices in July with a further 6.3% increase in average sales price against last years figures. Scotland still remains the fastest place in the UK to sell your home with a property taking on average 53 days to complete a sale.
The positive news comes at a great time for the property sector on the back of the recent announcement that the UK recession was deeper than expected. Moves such as the recent cut to LBTT which was introduced in July by the Scottish Government and further investment in the First Home Fund seem to have helped grease the wheels, but it’s perhaps the lack of sun and sand that is the biggest contributor.
Rightmove’s Mike Shipside highlights that with the absence of summer holidays this year, people have prioritised moving house. He goes on to comment: “There have been many changes as a result of the unprecedented pandemic, and these include a rewriting of the previously predictable seasonal rulebook for housing market activity and prices. Home movers are both marketing and buying more property than we have recorded in any previous month for over ten years, helping push prices to their highest ever level in seven regions. Rather than just a release of existing pent-up demand due to the suspension of the housing market during lockdown, there’s an added layer of additional demand due to people’s changed housing priorities after the experience of lockdown. This is also keeping up the momentum of the unexpected mini-boom, which is now going longer and faster. We associate this time of year with diving into the pool rather than the property market, and of sand and sun rather than bricks and mortar, but buyers have had a record £37 billion monthly spending spree.”
It remains to be seen how long the stellar form will continue, but the reality is there are no immediate signs of a slow down; new listings remain consistent and buyer demand is ever increasing.
You can read the full Rightmove House Price Index here.