The value of domestic property transactions fell to almost £300m in Tayside last year despite a pick-up in sales in the last quarter.
The figure produced by Tayside Solicitors Property Centre, which has around 35 member solicitors firms in the region covering around 90% of the local market represents a 7.8% fall on 2010 when homes sales with a total value of £324m were recorded in the region.
The number of houses changing hands also saw a 7.3% year-on-year decrease, from 2,352 in 2010 to a total of 2,180 last year.
Although the figures were down overall in 2011, a better-than-expected final quarter of the year helped win back some of the ground lost over the previous three quarters when sales were down by £45.7m overall.
The final three months of 2011 saw £88.2m of property sold in 595 transactions compared with £68.1m of deals completed in the same period in 2010 through 510 home purchases.
TSPC manager Peter Ryder said it had been a tough year with first-time buyers continuing to struggle to get on the property ladder.
He said the top end of the market for premium properties had also been difficult but there were reasons for positivity given the level of deals completed in the mid-sector range.
Mr Ryder said there was a more realistic view of the market from buyers and sellers and the ‘offers over’ phenomenon which helped fuel Scotland’s property market boom had all but died out, with average prices closely aligned to home report valuations.
The average price of a property in Tayside last year was £137,236, down from £138,096 in 2010.
Mr Ryder said an increase in the availability of finance was key to growth and the Government also had a role to play in ensuring the market did not stagnate further.
He said: ”The top of the market is slow and the bottom end is slow but fortunately the middle which makes up the majority of the market is going along quite nicely just now and that has kept our heads above water.
”The volumes are down compared to the previous year and the solicitors, like any other businesses, would like to see more house sales. The last quarter was encouraging (though), and a relief, and we are hoping that will follow through into the first quarter of 2012.
”We need the banks to start lending to kick-start the first-time buyer end of the market and help move others on to second and third homes.
”The other thing is that stamp duty for first-time buyers had been relaxed but it is due to go back to normal. The first-time buyer threshold is currently £250,000 but the plan from March is to bring it back to £125,000. We need a bit of help from the Government on that.”