Part of the Tayside property market picked up over the summer according to a local expert who is also predicting a further increase in the number of transactions next year.
Lindsay Darroch the head of property at estate agents Blackadders, has claimed that a continued shortage of properties coming onto the market has led to increased price volatility with more properties going to a closing date.
He said there had been “significant price increases for properties that have been correctly marketed and that are in the right area”.
“This has led a number of developers also selling out all their stock for 2014 and, in my opinion, the new properties coming on the market are the key to getting the housing market moving,” he continued.
Mr Darroch has predicted that more properties could come on to the market later this year, after the referendum.
“I think that the referendum is now having a brake effect on the market, both curtailing property investment in Scotland and also putting some people off putting their property on the market, thus accentuating the shortage.
“I also have a slight suspicion that the increasing economic confidence and job security that has happened to many people has actually caused a lot more people to think this year about summer holidays, postponing their property move until the following year.
“I anticipate that from probably late September there will be a steady increase in the number of second-hand properties coming on to the market. I also think that the developers will be in a better position to start fulfilling demand for 2015.
“This will cause second-hand stocks to increase and create a pool of expectant buyers, meaning that 2015 will see the start of a huge increase in transactional levels.”
He added that the Government should continue to support first time buyers and hoped there would be a plan to replace the Help to Buy scheme.
He also voiced concerns that the Bank of England would move too quickly to put up interest rates and that this could halt a recovery in the property market.
“The figure that I will be watching very closely at the end of October is the number of properties coming on to the market,” he added.
“If this shows a significant increase compared to 2013, then I feel that the property market will move forward considerably in 2015.
“If this figure is the same, or down, compared to 2013, my concern is that 2015 will be a year of stagnation with more pressure put on the developers to come up with part exchange and other novel schemes to assist people in moving property.”