Booming tourism is fuelling house price rises
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A THRIVING Highland tourism sector is having a knock-on effect on the region’s property sales.
The latest report from independent property consultancy Galbraith, covering the second quarter of 2018 from April 1 to June 30, showed sales in the region increased by 40 per cent quarter on quarter.
This increase is in line with a sharp growth in the tourism market in the north of Scotland, which is driving demand for good quality accommodation in the most popular areas.
The changing political and economic climate in the UK could also be having an impact, according to Galbraith, with increasing numbers moving to the area for a better lifestyle.
Galbraith noted a 43 per cent increase in those registering on the firm’s books as potential purchasers in the Highland Council area, up from 329 to 471, year on year. The number of property viewings conducted by Galbraith in the Highlands has increased from 167 this time last year to 216 in 2018, a rise of 29 per cent.
Increased demand has also seen the average time taken to sell property drop by 21 per cent since last year.
Phiddy Robertson, who handles residential sales for Galbraith in Inverness, revealed that the average price of property sold from the firm’s Inverness office during the quarter rose 14.8 per cent from £284,992 in the previous quarter to £327,21
"The market has picked up significantly since 2015 and in 2018 the first six months show a steady increase in activity," she said.
"Demand for well-sited property remains high, with competition leading to more closing dates, most of which achieve significant premiums over the asking price, while there is also greater movement at the top end of the residential market."
The region continues to be a draw for new residents moving in from outside the area.
"While prices are rising, the Highland area remains less expensive than many other parts of the UK and we see buyers from all over the country making the move here to enjoy a better quality of life," Ms Robertson added.
The UK government House Price Index for May 2018 noted that the largest regional increase in sales by volume in Scotland was for the Highland region, where volumes increased by 3.9 per cent on the previous year.
Currently on the market with Galbraith in Inverness are the following properties:
The Galbraith letting department for Inverness also enjoyed a busy quarter.
The number of relets agreed increased by 25 per cent compared with the previous quarter. Viewings also increased by five per cent for rental properties and the average time taken to find a tenant for a rental property was just six days.
Sarah Hazzard, who manages lettings for Galbraith in Inverness, said: "We find that both city-centre properties and well-presented cottages in rural areas are snapped up soon after becoming available.
"Landlords are able to increase the rents they charge between tenancies due to the very limited supply of rental property in Inverness-shire and the very strong demand from tenants. We offer a full service which takes the hassle away from the owner and gives them peace of mind that we will manage the whole lettings process, ensure the rent is paid, and find the best possible tenant."
