Highlands and Islands housing sales hit eight-year high

The number of properties sold in the Highlands and Islands in 2016 has increased by the highest number in almost a decade, according to figures just released by the Highland Solicitors Property Centre (HSPC).

The total number of properties sold by HSPC in 2016 was 1,173, an increase of four per cent the highest figure since 2008 and the total value of sales was £199 million – 12 per cent higher than the 2015 figure.

At the same time, the average house price sold through HSPC in the Highlands and Islands increased by seven per cent compared to 2015, to an average figure of £170,359.

However, a nine per cent decrease in the number of properties being added to the HSPC register during 2016 reflects caution among house sellers.

The second home tax, which was introduced across Scotland in April last year, had an impact not only on potential buy-to-let investors but also on buyers. The most cited barrier for those thinking of purchasing a property is the additional Land and Buildings Transaction Tax, (LBTT).

The LBTT supplement means buyers now have to keep funds to cover the new tax if buying before selling their existing property. This additional property tax was introduced to cool the buy-to-let market and to create a barrier for investors, and it is reported to have had that effect across the country.

Sarah Woodcock, manager of HSPC, said: “Interest in the Highlands and Islands market is strong, as indicated by a 29 per cent increase in visitors to the hspc.co.uk website over the past year. The continual increase of unique visitors to the website shows the continued growing demand for property.

“The strong total sales value and the rise in average prices is a good indicator that the Highlands property market over 2016 has been stable but the low insertions mean low stocks so buyers have less to choose from, this may continue to push the sales in 2017.”

Ms Woodcock added: “Looking ahead in 2017, a lot will depend on the general economic conditions. While the UK is relatively stable compared to other parts of Europe, it is still a bit of a guessing game.

“We may also see the interest rates increase later on in the year so it’s still a great time to buy and sell with continued record low interest rates. Building on the stable figures we produced in 2016, we certainly hope for another year of steadily growing confidence.”