Reeds Rains Property Blog

Property News from Reeds Rains

Scotland House Price Index - January 2014




Scottish house prices show no negative response to Independence debate

  • House prices up £1,680 in January – largest monthly increase for 50 months
  • Average Scottish prices rise by £6,073 – largest annual increase since September 2010 

Donald MacLellan, Chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services, comments: “The enthusiasm of property investors suggests the Independence debate is having no impact on confidence within the Scottish housing market. Scottish prices are up £1,680 in January. Five consecutive months of rising prices indicate the market has bounced back fast as it gathers the fruits of the wider economic recovery. Whether or not the possibility of Scottish Independence throws up all sorts of question marks, such as the economic cost of a separate monetary system for Scotland, currency risks, changes to stamp duty and land tax, the property market seems currently unaffected. And whether some businesses are alarmed by the prospect of the use of a currency other than sterling, a development that might lead to a rise in transitional risks as well as large business costs, with corresponding implications for jobs, as yet there is little obvious impact. Banks such as RBS and Standard Life have threatened to leave Scotland altogether and decamp to England, possibly causing a drop in net lending. But if a yes vote for independence looked like the more probable outcome, we would expect this uncertainty to have manifested itself in property prices. As we can see, there has been no such impact on the housing market.

“2014 recorded the highest volume of sales in a January since 2008. Increased lending and mortgage availability are reaching heights not seen since before the recession as first-time buyers return to the market en masse. Mortgage finance – for those who can access it – is at its cheapest for some time. This is sustaining activity in all sections of the market, specifically buy-to-let investors and homeowners looking to upgrade. The spring market in Scotland will see more lending to first-time buyers thanks to cheaper rates, a boost in high loan-to-value mortgages and the support of Help to Buy. The lack of supply in properties in Scotland is boosting competition between new and previous buyers, propping up prices. The property market doesn’t appear to think things are set to change any time soon.”

Read the full LSL Scotland House Price index 

First Time Buyer Tracker – February 2014




The most advanced monitor of first-time buyer activity available


1. Average first-time buyer purchase price hits new high of £155,832 – up £5,000 in a month
2. But high loan to value lending is on the up, average LTV for new buyers rises to 82.3%
3. First-time buyer numbers up by a third year-on-year
4. However repayments increase as a proportion of income, as real wages stay stagnant

The average first-time buyer purchase price climbed 16% over the year to January 2014, hitting a record high of £155,832, according to the latest First Time Buyer Tracker from LSL Property Services. It represented a 3.3% monthly increase in purchase price, equivalent to a jump of £5,000.

This increase in purchase price has driven a rise in deposit size. The average first-time buyer deposit rose to £27,519 in January 2014 – from £26,963 twelve months before.

And for the first time in seven months, deposits are growing as a proportion of income. The average deposit represented 75.1% of a first-time buyer’s income in January 2014, up from 74.7% in December 2013.

This was the result of the differing speeds of recovery in the economy. While house prices have raced ahead, wages have been much slower to pick up. The latest ONS statistics showed total pay increased by just 1.1% over the year to December. Factor in inflation, which tracked at 2% over the same time period, and real wages have actually been falling. Deposits are forming a larger proportion of take-home pay.

David Newnes, director of estate agents Your Move and Reeds Rains, part of LSL Property Services group, said: “While the property market has been firing forwards, wage growth has been stuck in the mud of the economic recovery. Prices for first-time buyer properties have been marching steadily upwards, and have now reached a new record. "The property market has remained accessible to first-time buyers, because an increase in high LTV lending has offset rising prices. This is enabling more first-time buyers to enter the market.”

Read the full LSL First Time Buyer Tracker

World Bar Tender Day


World Bar Tender Day is to designed for people to show appreciation to staff in their local pub.   To join in the celebrations, we've collated a few of our properties that have their own bar; if you bought one of these you could just appreciate yourself!


Snow Hill Rise, Wakefield, WF1

4 Bedroom Detached Bungalow for Sale in Wakefield, WF1


Hartville Road, Hartlepool, TS24 

5 Bedroom Detached House for Sale in Hartlepool, TS24


Whitegables Main Street, Hirst Courtney, Selby, YO8

5 Bedroom Detached House for Sale in Hirst Courtney, YO8

Greenacres, Purston, WF7

3 Bedroom Detached House for Sale in Purston, WF7

Front Street, Stanhope, Bishop Auckland, DL13

Bedroom Semi Detached House for Sale in Stanhope, DL13

LSL Buy to Let Index - January 2014


Buy to Let index January 2014 - Reeds Rains Blog

The latest LSL Buy to Let Index for January has been published.  The headline details are

  1. Landlords across England and Wales have seen returns eclipsed by those in the capital, according to the latest Buy-to-Let Index from LSLPropertyServices plc, which owns the UK’s largest lettings agent network, including  Reeds Rains.
  2. London landlords have seen total annual returns of 14.6% in the year to January 2014.  A higher than average return of £38,104 per property in London, which equates to 5 x  the total return per property in  the North East and Yorkshire & the Humber.
  3. Annual returns on rental property in England and Wales, have grown significantly in the past twelve months, to 8.9% in January, up from 5.7% in January 2013. 
  4. The average buy-to-let investor in England and Walescould expect to make a total annual return of 13.0% over the next 12 months, equivalent to £22,256 per property, if rents continue to rise.[1] 



[1] Assuming house prices change at the average rate of the last three months and they achieve the average yield of 5.2%.


December 2013 - Scotland House Price Index


Reeds Rains Blog - Dec 2013 Scotland House Price Index

LSL Property Services/Acadata Scottish House Price Index for December is published today. Here is a summary of the key trends:

In December 2013 there were 9,050 property transactions in Scotland. This level of sales has a number of significant features.

  1. It represents a 27% increase on December 2012’s total, continuing the momentum in sales that started in June 2013;
  2. It is the highest number of properties sold in the month of December since 2007;
  3. It is the highest number of properties sold in a single month since July 2008 - which was the last month in which sales exceeded 10,000 homes, prior to the slow-down in housing sales resulting from the credit crunch in the financial markets.

The main driver of the expansion in sales in 2013 has been the first time buyer. The mortgage companies eased their constraints on lending to this sector of the market, offering more competitively priced products with lower deposit requirements. This was assisted by the Bank of England’s Funding for Lending Scheme (FLS), latterly replaced by the Help to Buy (Scotland) scheme. The increase in the number of first time buyers, which the CML estimated as being 32% during Q3 2013 compared to the previous year, has had a knock-on effect throughout the rest of the market. With interest rates at an all-time low, this has produced an increase in housing transactions across all sectors, with sales volumes for the six months July – December 2013 up 24% on the same period in 2012.

Read the full Scotland House Price Index for December 2013

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