Scottish house prices on the rise once more

AFTER pausing for breath in the previous quarter, Scottish house prices are once more on the rise, according to the latest Scottish House Price Monitor from Lloyds TSB Scotland.


[Pictured: Lloyds TSB Scotland chief
economist Professor Donald MacRae.]

In the three months to 30 April 2008, the quarterly price index for the average domestic property in Scotland rose by 2.3 per cent to give an average mix adjusted Scottish house price of £163,639. On an annual basis, Scottish house prices have risen by 11.6 per cent. The gain this quarter combined with the fall in the previous quarter gives an average price change over the last six months of +1 per cent.

The north of the country is leading the rise with Aberdeen reporting an annual increase of +19 per cent and the North excluding Aberdeen a very strong +26 per cent.

Though Dundee is the only area to report a fall this quarter at -5.2 per cent, the figure for the last twelve months demonstrates the underlying strength of the market at +18 per cent. With Central/Fife/Perth and Tayside reporting a robust annual rise of +13 per cent and Edinburgh +12 per cent, any slowdown in the Central Belt looks modest.

Only in Glasgow, the South West and South East are annual figures somewhat lower. However, with all three areas reporting rises in the quarter ranging from +1.4 to +9.4 per cent, the Scottish housing market is portraying a more positive picture than elsewhere in the UK. Prices are not falling, but the rate of rise is slowing.

The price movement across Scotland is composed of price changes in different property types. Flats are showing an increase of 4.1 per cent in the quarter, detached properties an increase of 3.2 per cent and semi-detached properties an increase of 1.0 per cent. Only terraced houses show a fall in the quarter of 2.4 per cent.

Lloyds TSB Scotland chief economist Professor Donald MacRae said: “Following last quarter’s pause for breath after seven years of house price increases, the average Scottish house price is again on the rise. However, the rate of increase has slowed substantially to a much more sustainable rate.

“The latest quarterly gain has more than compensated for the last quarterly fall, to give an average price change over the last six months of +1.0 per cent.”


Steven Miller and his wife Jacqueline (pictured above) are directors of leading Ayrshire estate agents Donald Ross. Steven commented: “In general the Ayrshire market has had a good start to 2008, however the market has slowed somewhat as buyers and sellers wait to see the outcome of the recent publicity.

“The local market is much more buoyant than the press is reporting nationwide. South Ayrshire is a very robust market and still continues to offer buyers excellent value for money coupled with some of Scotland’s finest amenities, including championship golf courses, sailing, fishing and an excellent selection of award winning restaurants and hotels.

“Contrary to some predictions of a fall in prices, we would expect house price inflation to slow to between 2-5% per annum, outlining South Ayrshire’s highly desirable residential benefits.”


Bob Cherry (pictured above) is a partner in property consultants CKD Galbraith, based in their Ayr Office. Looking at the latest figures from an Ayrshire perspective, Bob commented: "The market in Ayrshire has been quieter and slower in the first part of 2008, although we are seeing a pick-up in sales this month with the better weather.

"Our experience is that properties of quality and individuality continue to sell well, provided they are marketed at a realistic guide price.

"Viewers are plentiful - but more cautious,selective and discerning as prospective buyers than in previous years.

"There is life in the market yet - professional marketing and sensible pricing is the key."

www.ckdgalbraith.co.uk

* * *

Scottish house prices continue rising while those in UK fall

HOUSE PRICES in Scotland rose by 2.4% in the final quarter of 2007, compared with a 0.8% fall in prices across the UK as a whole.


The annual rate of house price inflation in Scotland at the end of last year was 13.1%, the strongest price rise in the UK and well above the UK average increase of 5.2%.

But Scottish housing continues to be the most affordable in the UK. The average price of a house in Scotland is currently £144,897. This is 26% less than the UK average of £197,071.

Cumnock in Ayrshire is the most affordable town in Scotland with an average house price of £111,269.

Bank of Scotland expects a slowdown in the Scottish housing market in 2008 and predict house price growth of 4%.

Bank of Scotland chief economist Martin Ellis commented: “The Scottish housing market is the best performing market in the UK. Scottish house price inflation is 13.1%, well above the UK average increase of 5.2%.

“A key factor driving the increase in house prices in Scotland has been its relative affordability. Scottish house prices continue to be the most affordable in the UK. At £144,897, the average price of a house in Scotland is 26% less than the UK average of £197,071.

“We expect a slowdown in the Scottish housing market in 2008 and predict house price growth of 4%. This would be the smallest rise in Scottish house prices in eight years.

“A large numbers of Scottish borrowers who took out fixed rate mortgages in 2005 and 2006 at very low rates will move onto higher rates as their mortgage term expires this year. Higher food and energy prices will also take up more of Scottish homeowners’ income, reducing the amount many householders have to spend on housing. These factors are likely to lead to slower house price growth in Scotland in 2008.”

The average price of a house in South Ayrshire is now £177,858 compared to £162,215 a year ago - a rise of 10%.

In North Ayrshire the average house price has risen 14% from £123,532 at the end of 2006 to £140,535 in December 2007.

The lowest rise was recorded in East Ayrshire, where the average house price has risen just 6% in the past year from £129,050 to £136,711.


Director of Donald Ross Estate Agents in Ayr Steven Miller (pictured above with his wife and fellow-director Jacqueline) commented: "2007 was a challenging market place. However, this latest survey shows the Ayrshire housing market to be extremely robust with strong growth compared to elsewhere in the UK.

"We feel that 2008 will be an excellent year whether you are buying or selling, albeit at a lower level of house price inflation compared with previous years. Overall we feel the medium-term forecast in the local market is reasonably stable with modest growth."

Donald Ross Estate Agents
11 Beresford Terrace
Ayr KA7 2ER
Ayrshire
Scotland

Contact: Steven Miller, Managing Director
Tel: 01292 288222
Fax: 01292 280083
E-mail: office@donaldross.co.uk
Web: http://www.donaldross.co.uk/

Scottish businesses are more confident than their UK counterparts

BUSINESS confidence may have been dented by the tougher conditions of recent months, but Scottish firms are facing 2008 with confidence, according to the Business in Britain survey from Lloyds TSB Commercial.


The report, based on the responses of more than 1,800 UK firms, shows that the balance of firms expecting improved, rather than worsening conditions over the next six months stands at 23 per cent in Scotland compared with 18 per cent UK-wide. Scottish businesses report stronger figures for confidence in future orders, sales and profits.

Scotland also reports strong turnover figures in the last six months, with 56 per cent of businesses reporting an increase, 27 per cent no change and 17 per cent a decrease. This compares with 47 per cent of UK businesses reporting an increase, 30 per cent no change and 21 per cent a fall.


The balance of firms which increased rather than reduced employee numbers in the last six months stands at 28 per cent for Scottish businesses compared with just 8 per cent of UK respondents. For the coming six months, the balance of those expecting to recruit stands at 17 per cent in Scotland and 8 per cent for the UK.

There is little evidence that businesses are feeling the pinch on their finances, with only 13 per cent of Scottish firms reporting strains on cash flow. This is the lowest figure reported by any of the regions in the UK, and lower than the national average of 21 per cent. Even the national average is still far below the peak reached during the 1990s recession, when 56 per cent of firms reported problems with cash flow.


Despite the tougher times ahead, firms are still optimistic about their scope for increasing prices, in the hope of countering falling sales. The balance of UK firms expecting to be able to raise prices has reached a 15 year high of 34 per cent - up from 23 per cent in the last survey. The figure for Scotland is higher still at 39 per cent. This could have implications for the Bank of England, which has to consider inflationary pressures when making interest rate decisions over the coming months.

Lloyds TSB Scotland corporate and commercial director Manus Fullerton said: “Across the board, Scottish businesses have presented stronger results than the UK average, suggesting they are in robust shape. There is no shortage of talk of difficult times ahead economically, but Scotland appears to be in confident mood – a mood echoed by the findings of our Scottish Business Monitor earlier this month.


“Businesses may well tighten their financial belts in the months ahead, but there is still little evidence of the gloom and doom gripping Scottish commerce.”

www.lloydstsb.com

Scotland’s motor racing heritage parades
at Culzean Autoclassica this weekend

THE launch of the new classic car event the Culzean Autoclassica at Culzean Castle, Ayrshire this weekend, 22-23 September, will feature a nostalgic return to 55 years ago, when the old wartime airfield at Turnberry played host to the prestigious National Trophy and Formula Libra races.


In 1952 Turnberry became just one of two venues ever to host races with Grand Prix team cars entered. Numerous top named drivers were among the entry lists, including Stirling Moss, Ken Wharton and Reg Parnell driving such cars as two legendary BRM V16s and the Famous Thinwall Special Ferrari driven by Mike Hawthorn.

Also present was another great name in motor racing the Scottish Ecurie Ecosse team, mostly consisting of Scottish drivers brought together by former Grand Prix driver David Murray who primarily raced “C” Type & “D” Type Jaguar sports cars out of Merchiston Mews in Edinburgh.

They famously won the Le Mans 24hrs race two years running in 1956-57 with the Jaguar “D” Types. Among the drivers who raced for Ecurie Ecosse were Jimmy Stewart, Ivor Bueb and Ron Flockhart.

A planned special photo-shoot at the old Turnberry race circuit this weekend will hopefully recapture the memories of many who attended the races in the 50s.


To celebrate this local racing heritage, the Culzean Autoclassica launch hopes to feature on display a F1 Race car (Jordan Honda EJ12 - pictured below, and also underneath the first paragraph of this article) and a Le Mans 24hrs Race car (Rafanelli - Riley & Scott Mark 111 - pictured above) in addition to many prestigious Sports and GT classics, historic saloons and tourers. All will be on display around the castle forecourts and the Visitor Centre at Culzean.


Members of the public are invited to attend the launch at Culzean Castle on Sunday 23 September from 10am to 5pm and sample a preview of some of the attractions that are being planned for the first Culzean Autoclassica proper in 2008. As with the main event, the launch will attempt to capture both the Turnberry heritage and the castle’s unique ambience and magnificent location by adopting a traditional theme. Participants and members of the public are invited to enter into the Autoclassica spirit by arriving in period costume reflecting their particular era of transport or the fifties and sixties. Prizes will be awarded for the best turned out.

Coupled with all the usual Culzean Castle and Country Park attractions available, the Culzean Autoclassica promises to be a great day out for all the family.

For more information on admission to the launch event, please visit the Culzean Autoclassica website www.culzeanautoclassica.com

or the National Trust Culzean Castle website at
www.culzeanexperience.org

Ayrshire company Begg Scotland nominated
for Scottish cashmere fashion award

A leading Ayrshire textile company has been shortlisted for one of
Scotland's most prestigious fashion awards for its innovative and
contemporary designs.

Begg Scotland has been nominated in the Cashmere / Textile Designer of
the Year at this year’s Scottish Fashion Awards, sponsored by Scottish
Enterprise’s Scottish Textiles team.

[Picture shows: Miss Scotland, Lois Weatherup, modelling a coat which was made by Scottish designer Sandra Murray. Sandra Murray was commissioned by Begg to create some catwalk garments suitable for the Dressed To Kilt Event which took place in New York in April this year. The exclusive coat was made from a Begg Scotland printed cashmere throw. Photograph by Lloyd Bishop.]

The company will battle it out with other leading textile companies
including Pringle of Scotland, Johnstons Cashmere, Queen & Belle and
Todd & Duncan for the accolade at a glittering VIP Gala dinner at
Stirling Castle on 9 September.

The shortlisted companies were selected by a judging panel consisting of
some of the leading names in the UK and international fashion scene
including Kate Phelen, fashion director of British Vogue; Brigitte
Stepputtis, head of couture at Vivienne Westwood; and Garry Van Dis, vice-president of Conde Nast publications.

Begg Scotland was recognised following the launch of its new print
design ‘Balmoral‘, launched in February 2007, which emphasises its
unique Scottish heritage while incorporating a vivid colour palette.
The company commissioned Scottish designer Sandra Murray to create a
bespoke garment using the fabric and the result was the ‘Balmoral Fire’
coat-dress, which was one of the showcase designs at this year’s Dressed
to Kilt event in New York.

Kirsty Scott, head of Scottish Textiles team at Scottish Enterprise,
says: “We are delighted to be supporting the Scottish Fashion Awards
again this year. The nominees for this year’s Textile/Cashmere designer
of the year are all leading the way in design and innovation. It is
vitally important that we help support Scottish textiles companies to
invest more in design to ensure that Scotland remains famous around the
world for producing high quality, innovative fabrics and Scottish
fashion remains on the international catwalk.

“The Scottish Fashion Awards help to showcase the wonderful talent in
Scotland’s fashion and design sector and celebrate young designers in
Scotland who have huge potential to promote Scotland’s reputation for
producing high quality innovative textiles to audiences both at home and
overseas.”

The winner of the Textile / Cashmere Designer of the Year award will be
announced alongside the other nine categories, which will include
designers, retailers, models, fashion communicators, fashion icons and
accessory designers. Each winner will receive a handcrafted art piece
specially designed by internationally renowned Scottish sculptor Andy
Scott, whose work has been exhibited in cities around the world.

The event will also honour an individual whose outstanding career in
fashion will be celebrated by an induction into the Scottish Fashion
Awards Hall of Fame, sponsored by Bentley Motors Limited.

Jamie Fraser, managing director of Hamilton & Inches and chairman of the judging panel said: “In only its second year, the Scottish Fashion
Awards are already proving their worth and importance to Scotland. We
have had a record number of entries and nominations and the standard is
extremely high. The judges have been set an exciting challenge to select
the winner for each category. Hamilton & Inches are delighted to be the
headline sponsor of the Scottish Fashion Awards for the second year. The
success of Scots in the fashion industry, both in the UK and
internationally, is something to be highlighted and celebrated.”

Event founder/producer Tessa Hartmann added: “The Scottish Fashion
Awards represent an incredible opportunity for Scottish fashion talent
to be seen by respected fashion authorities from around the world. The
cashmere / textile industry in Scotland alone employs around 19,000
people and fashion itself is the fourth largest employer in the UK. With
so many Scots doing wonderful things on the international catwalks for
their own labels and global brands, it was without time to celebrate and
acknowledge that fact. As an event, we are delighted that we have
brought so much awareness to so many different types of fashion creators
and innovators from Scotland - that’s what this is all about!”

www.beggscotland.com