A rise in house sales in Scotland points to an improvement in consumer confidence, but mortgage lending is the main barrier to a full recovery in the housing market, according to a report.
A study found residential property sales were 7.7% higher in the second quarter of this year compared with the same period in 2012; a rise powered by sales to first-time buyers.
While a minor fall in house prices was recorded over April, May and June, prices overall are up by 1.2% on December’s levels.
Experts said the housing market was “bearing up well” and there were some green shoots of recovery, but they cautioned that sales levels in the first half of 2013 remain low compared with 2007 totals.
More interest from first-time buyers is needed to make sure the housing market gets fully back on track, they said.
The figures are contained in the latest LSL/Acadametrics Scotland house price index.
It found that the average house price in Scotland in June hit £143,181, down £627 on May’s total but up £1,648 on December’s figure.
June was the third month in succession where there was a minor fall in house prices.
Over the whole year, prices were down 1.6%.
Transaction numbers increased by 7.7% between the second quarter of 2012 and the same period of this year, “suggesting an improvement in consumer confidence in the housing market during the first half of 2013”, the report noted.
The main reason for this increase in demand was said to be the easing of credit conditions, enabling more potential purchasers to obtain a mortgage.
About half of the rise in sales was the result of an increase in activity by first-time buyers, experts said.
Acadametrics chairman Dr Peter Williams said: “Overall, we are seeing an increase in consumer confidence as the economy begins to expand.
“This, together with a slight easing in the restrictions in obtaining mortgage finance, is increasing demand for housing, especially among first-time buyers.
“As a consequence, the number of housing transactions is increasing over 2012 levels. We expect these trends to continue over the summer months.”
“However, we should perhaps remind ourselves that transaction levels during the first half of 2013 are still running at only 48% of the level seen in 2007, which was not in itself considered to be an exceptional year.
“The market still has a long way to go before we can talk of a full recovery.”