Spring is usually the time when many people, who want to move house, think about putting their property on the market and generally it is the start of a hectic time for conveyancing solicitors who prepare for the flurry of activity during the spring and summer months.

However, 2020 as we all know, has been a drastically different year to any that have come before even when it comes to buying or selling your property.

In March, the government halted the housing market by telling people to delay their home moves and to stop any viewings for new properties coming onto the market. Consequently, hundreds of people were left in a predicament of not knowing when (or even if) their property transaction would settle. Solicitors had to act quickly to try and get as many settlements “over the line” as they could, with the regulations and guidelines changing on a daily basis.

Ultimately, the property market came to almost a complete standstill and in April and May there were hardly any sales or purchases settling apart from “emergency” transactions. There was a real sense of uncertainty as to when the property market would pick up again however the demand from buyers and sellers began to rise even while the lockdown restrictions were in place. This demand became even more apparent when restrictions began to ease on 29th June 2020 evidenced by the increasing volume of viewing requests, Home Report downloads and property queries exceeding pre-COVID-19 levels.

The Scottish Government announced that Phase One of lockdown would include “preparing for the reopening of the housing market” and in the first three weeks of July 2020, the number of homes coming to market had increased by 29% compared to the same period last year. This has resulted in a very competitive market for properties situated all over Scotland. Locally, in Ayrshire, many properties have been selling at 5 to 10% above the Home Report value and the number of closing dates being set has dramatically increased in the last few months since restrictions lifted. In particular, it has been noted that there has been a surge of interest in Scottish homes from London buyers as the market reopens. Savills has stated that they have witnessed a 71% spike in the number of London buyers viewing properties in Scotland in May, compared to the start of the year. Many people are looking to buy larger properties with more room to work from home and access to garden/outside space.

To coincide with the ease of restrictions, the Scottish Government announced some measures to help support the Scottish property market. The first change was in relation the Land and Buildings Transaction Tax which means that this tax does not apply for any property purchases at £250,000 or less (previously set at £145,000). Further, the announcement of an additional £50 million investment into the First Home Fund to help first time buyers save a house deposit, by loaning them up to £25,000, has encouraged first time buyers to take a step onto the property ladder. In turn, these measures have assisted in boosting the property market at this uncertain time.

If you are thinking of selling your property then it is definitely a good time to put your property on the market and it will be interesting to see whether this high demand for property will continue into the winter months (which is typically a quieter time). Although the future of the Scottish property market is uncertain and will depend on whether any previous lockdown restrictions will be re-imposed, the next few months appear to be just as busy as those previous months since lockdown restrictions were lifted.

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