Property prices in Scotland may fall by as much as 2.5% during 2011, and they may not start increasing again until 2013, according to a set of predictions for the coming year from a leading estate agent.
First-time buyers do have some good news, but in reality anyone trying to get onto the property ladder will continue to find it tough throughout the coming year. Existing home-owners may also find life a lot more challenging. Buy-to-let investors who take out landlord insurance look to be in the strongest position to benefit from the current climate.
The Halifax has predicted property prices in the United Kingdom will follow the same pattern as 2010 and will end 2011 at a similar level to the current market. The RCIS (Royal Institute of Chartered Surveyors) are not that optimistic and they predict that United Kingdom property values will go down by New Years day 2012, they also fear that if unemployment plays a factor; a decline of up to 5% is more than likely.
In Scotland, Mark Hordern, who is the marketing manager at the Glasgow Solicitors’ Property Centre, believes property values will remain flat. He said “There is still plenty of latent demand underpinning property prices from first-time buyers who would like to enter the market.
“But because demand is currently weak some existing home owners are likely to decide to take their properties off the market and a limited supply will support prices. There is a real danger that landlords will soak up the supply of properties normally available to first-time buyers excluding first-time buyers from home ownership.”
According to the CML (Council of Mortgage Lenders) around 80% of first-time buyers aged under 30 are getting help towards the deposit from family and friends. Those not able to get this help have to put off house purchase until they are well into their thirties.