Grey day for Glasgow property marketPosted on 16th April 2018 in House Prices
Over 55s fuel boom in home sales
As if to illustrate our previous blog comment about Glasgow’s booming property market, a new study reveals that one of its prime drivers is older home owners.
Over 55s saw for a 46% rise in house exchanges in the first quarter of this year compared with the same period in 2017.
With the city having the fastest rising property prices in the UK, ahead of London and Edinburgh, those at the top of the property market are benefitting most as they look to downsize or cash in their equity.
Transactions among this age group are being fuelled by a growing number of people taking advantage of pension drawdown and equity retrieval as baby boomers accesses the wealth accumulated in their properties and pensions, according to the national home mover report from customer insights company TwentyCi.
A fifth of exchanges were for flats, up by 10% on the previous year, while detached homes saw the greatest fall in transactions, by 12% as a growing number of families opt to ‘improve rather than move’.
The introduction of the Land and Buildings Transaction Tax (LBTT), with progressive taxation levels up to 12% on buildings worth more than £750,000, has dampened sales activity.
More than half of all exchanges were for terraced and semi-detached houses, up by 17% year-on-year.
‘The continued growth in the Glasgow market suggests a building of confidence, stability and momentum,’ said Stuart Wylie, co-director of Glasgow-based hybrid estate agents Walker Wylie.
London saw a 3% rise in exchanges quarter on quarter while property exchanges are up nearly 8% and the data shows that in the last year, Glasgow, Edinburgh and Northampton were the three fastest places to sell a property.
Estate agents are also now selling properties faster than a year ago. In the first quarter of 2018 it took an average of 76.8 days to sell a property, seven days faster than in the first quarter of 2017.
Walker Wylie said the past year has seen a gradual decline in the amount of time it takes to sell a property and that its average is now just 23 days, compared with a UK average of 67, reported by Rightmove, the property portal, at the end of last year.
Glasgow also saw the largest percentage rise in rental properties outside of London, and in rental prices, up by 6%, over the past 12 months.
Edinburgh was the only big city that did not see a significant increase in the percentage of rental properties in the last year.