West of Scotland housing market ended 2015 on a high

A combination of increasing house prices, higher successful bidding prices and reduced selling times has led to 2015 ending on a positive note for the west of Scotland property market, according to the Glasgow Solicitors Property Centre (GSPC).

The largest estate agency network has published its quarterly report for the final three months of 2015, with statistics showing that house prices have increased by 4.7 per cent in Glasgow and the surrounding areas compared to this time last year, the largest annual house price increase for Q4 since 2007.

Selling times also continue to fall and are the lowest they have been for the past eight years. The median number of days a property stays on the market has fallen from 92 days to 84 compared to the same quarter in 2014.

On average, successful bids for houses are now 2.3 per cent above the asking price set by the sellers. This is a marked increase compared to the same time in 2014, when the difference was +1.2 per cent and in 2013, when it was just +0.6 per cent.

Austin Lafferty, director of the GSPC (pictured), said: “It might be slow, but there are definitely signs of an upward trajectory in bidding spreads. From 2009 to 2012 the average selling price of a home in the west of Scotland actually dipped below the average asking price so it is heartening to see they have increased to a 2.3 per cent difference.

“However, current selling-asking price spreads are dwarfed by the enormous figures observed in the days prior to the economic downturn when houses were selling for more than 20 per cent over the asking price on average.”

Professor Gwilym Pryce from Sheffield University, who analysed the GSPC’s sales data, said: “It is worth noting this renewed vigour currently seems to be strongest in the suburbs and surrounding districts rather than in Glasgow itself. Annual house price inflation is currently 3.1 per cent in Glasgow compared with 6.1 per cent in the neighbouring local authorities.

“The story of the West of Scotland housing market has been one of ongoing tentative recovery. There are no obvious signs of an impending slowdown, which is likely to be good news for sellers, but less good news for buyers if prices continue to rise at a faster rate than wages.”