Glasgow housing market struggles to recover from recession

Aug 1 2012 By Nicolle Laurie

THE housing market in Glasgow is still struggling to rebound from the recession – despite some upbeat new figures.

A report released this week showed a drop in average property prices in the city compared to the same time last year – but an increase in the number of residential sales so far in 2012.

But Mark Hordern, chief executive of property marketing network GSPC, warned the figures don’t reflect recent changes in the Glasgow market, which he said remains stagnant.

Registers of Scotland (ROS) showed a drop of 2.1 per cent in the average property price.

But on a more positive note, the volume of sales were up 21.7 per cent from the first to the second quarter of 2012.

Hordern said the increase in sales in the city was closer to 25 per cent in the first quarter but this has since steadily declined.

He added: “The volume is largely the same as it was at this time last year.

“House prices did dip at the start of this year but often sellers will drop their asking price in order to achieve a sale.

“From April to the end of June, prices went back up in the Glasgow area by about two per cent.

“The report is not the whole story. In the time after the period covered in the report, house prices have recovered but that big jump in sales has come to an end.”

Clyde Property agreed that the market remains flat but saw cause for optimism in the ROS figures.

A spokesman for the estate agents said: “We regard these figures as encouraging and they tie in with our own perception of how the market is continuing its recovery.

“This is not something that will happen overnight but the fact that sales volumes have increased significantly is welcome news.

“This could, in part, be due to better availability of mortgages, especially for first-time buyers.”

He added: “Glaswegians can expect mortgage rates to remain low for some considerable time, with the real possibility of a further quarter point cut to 0.25 per cent coming soon.

“That’s great news for people on tracker rate mortgages, who will see their monthly mortgage bill fall.”