Borders house prices fall but housing market still bouyant

House sales in the Borders are bouyant but prices have dropped slightly
House sales in the Borders are bouyant but prices have dropped slightly

House prices in the Borders fell by over 7% in 2015 from an average of £160,000 in 2014 to £145,000 according to figures released by the Registers of Scotland.

The region was one of the few local authority areas in Scotland to record a drop in houses prices with the overall picture in Scotland seeing a 3.6% rise. The north east of the country has struggled because of economic conditions but market activity levels have soared in the likes of Dundee, Edinburgh and Glasgow.

Estate agents Rettie & Co regard the total value of all property sold as the best barometer of housing market performance and in Scotland the value rose by 9% to £4,827,211,091. In the Borders the total value of sales during 2015 rose to £95,120,444, up from £84,895,664 in 2014.

Detached houses in the region maintained their value, the average price sitting at £255,471 (Scottish average is £244,830), up from £245,922 in 2014. The average semi-detached in the region dropped in value by nearly £4,000 to £164,685; the average price paid last year for a terraced property fell from £143,556 the previous year to £133,050; and the average price for a Borders flat was £93,199, down from £99,290.

A total of 567 homes were sold in the Borders during 2015 (182 detached, 75 semis, 154 terraced and 156 flats).

Rettie & Co’s Director of Research, Dr. John Boyle, said: “These latest statistics show that the housing market in Scotland improved fairly solidly over 2015 as a whole, continuing the growth seen from mid-2013 due to improving economic activity levels, consumer sentiment, bank lending and new build activity.

“First time buyers have also returned to the market in larger numbers, which has been a major factor behind getting the market moving.

“It appears that the changes such as the new property tax (LBTT) has had some impact in slowing down the middle to upper parts of the market since April but higher levels of mortgage lending is probably the main driver in improving the market at this level.”