Property Partner, Chris Todd shares his thoughts on the Tayside property market as featured in The Courier.
Last month, The Bank of England increased the base rate of interest by 0.75% to 3% - this is one of the largest rises in recent times. The surge in the cost of living has impacted people across the country and is affecting spending habits.
The Courier approached a series of property specialists working in the Tayside and Fife areas to enquire how the changing landscape is impacting the local property market.
Chris reassures buyers and sellers that we are still seeing a demand for property in Dundee and the surrounding areas; during a time when property market typically moves at a slower pace as Christmas draws near.
Chris says:
“There is no doubt that political events and their impact on interest rates have caused some nervousness in the market locally. Things have slowed a little, but we are getting into what traditionally is a slower time for the housing market, through to Christmas.
“There is, however, still healthy demand in Dundee and across Tayside. The buyers and sellers are there. Lenders are bringing fixed rate products back into play, albeit at higher rates of interest from the historically low levels they have been at over the past decade. Money is still available, which is a critical factor.
“When it comes to house prices, I do not see them dropping locally. What I do see is them stabilising. While we did not experience some of the astronomical highs that there were in other areas, gone are the days when we will see offers significantly higher than the home report valuation. There will inevitably be exceptions. But I think we are going to be closer to those sorts of figures.
“What is important in all of this is that we do not lose sight of the big picture and how the overall finances of a house move stack up. Most buyers are, of course, sellers."
“While it is more expensive to borrow, you may not be paying as much for your next home. So, while people may not be saving money, I do not see them losing either. The costs are just balanced in a different way.
“Importantly, we are not seeing large numbers of deals falling through. Our experiences are that these are rare, which is positive.”