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Lack of Tayside properties for sale raises ‘price spike’ fear

A dearth of properties coming on to the market could lead to rising houses prices, an expert has warned.
A dearth of properties coming on to the market could lead to rising houses prices, an expert has warned.

A Tayside property expert has warned that a lack of properties coming to the market could lead to a price spike.

Blackadders head of property Lindsay Darroch said that supply and demand was “out of synch” and was starting to cause house prices to increase in Scotland.

He said: “There has been a spate of reports regarding increases in UK house prices.

“The recent property transactions that I have dealt with would indicate that this is being replicated throughout Scotland.

“As the economy continues to improve and confidence returns, the number of purchasers and the amount of mortgage funds available to borrow is increasing.

“The volume of purchasers and mortgage funds is increasing far more rapidly than the number of properties coming on the market, repeating a trend seen in 2013.

“The impact of supply and demand being out of synch is being shown by price spikes in certain locations throughout Scotland,” Mr Darroch went on.

“January showed a slight increase in the number of properties coming on to the market but it is certainly not the big whoosh of properties that a number of property experts had been expecting.”

He added that he was aware of a number of developments that will be coming on to the market in the next couple of years, but said that this would not have an impact on the 2014 property market.

Mr Darroch would like to see barriers removed to encourage more new properties on to the market.

He continued: “My focus for the property market would focus on the removal of all barriers to encourage new properties on to the market.

“The UK, Scottish and local governments should do all they can to remove planning barriers to enable developers to embark upon a major house building and development programme.

“An increase in bank funding and support for developers, large and small, would increase the supply of houses coming on to the market.

“The home report is more than ever looking like a tax on house-selling and is clearly another barrier to properties coming on the market.

“There should be continued support for first time buyers without them, the property market will not flow freely.”