Harper Macleod Warns House Buyers of Hot Highland Property Market in 2006

Inverness-based commercial law firm Harper Macleod LLP is warning house-buyers that the ever-increasing demand for property seen in recent years is set to continue throughout the Highlands in 2006.

Despite predictions of a cooling property market towards the end of 2005, Harper Macleod - one of the region's top estate agencies - is seeing a continued rise in prices, with strong competition for both new build and second hand properties in prime areas.  Throughout the UK as a whole, house prices in February rose at their fastest monthly rate since August 2005, rising 1.4%, and the Scottish housing market is expected to outperform the rest of the UK this year, with a predicted rise of 7% compared to a 3% rise in UK house prices.

These rises are set against the backdrop of Scotland's recent property boom, which saw the highest year-on-year increase for 2004-2005 take place in the Highlands and Islands, with a rise in prices of 12.8%.  Concerns that rising land and property prices are making it increasingly difficult for first-time buyers to get a foot on the property ladder are well founded, with a shortage of affordable housing putting the vast majority of homes, particularly new build, out of the reach of those on limited budgets. Ex local authority properties continue to offer first time buyers the best value for money, but even in this market, prices are reaching £110,000 and beyond.

Gary Campbell, Partner at Harper Macleod commented; "It was forecast nationally that the rise in Scottish property prices would be around 3% this year. We have seen a 1.5% increase in January alone and all the signs are there that we will see properties going for 10-20% over the asking price, continuing the boom of the past four years."

He continued; "Buyers will have to take a canny approach to the housing market, as traditional hotspots are pushing prices up in neighbouring areas which previously offered good value for money, such as Nairn and Dingwall."

Harper Macleod is a member of the HSPC (Highland Solicitors Property Centre), which represents around 90% of the second-hand property market in the Highlands. The HSPC website attracts over 3,000 'hits' per day and during 2005, HSPC solicitors sold almost 1,700 properties with a combined value of £250million.   Harper Macleod has established itself as a leading player in the Highlands' residential property market and has developed an enviable reputation in handling the sale of high-value properties in particular. The firm's property team handled sales totalling over £4million in 2005, with an average property price of almost £200,000.

Campbell concluded; "My advice to anyone who is considering buying or selling their property is to speak to their solicitor before starting.  He or she will be able to offer advice on how clients can negotiate the process to their best advantage and it is the solicitor's role to make the process go as smoothly as possible and to add value to the house buying and selling process.  With good marketing and legal advice provided by your solicitor, buying the home of your dreams doesn't need to turn into a nightmare but in the current busy market conditions, buyers and sellers should leave nothing to chance."