2016 will see in Scotland’s recovery
Speaking at Aldermore’s Glasgow launch event, Cameron, managing partner at the firm of surveyors, said there was nothing but positive news for the growth of the housing market in Scotland.
He said: “I predicted at the start of this recession that the 2016 would be the year that saw the Scottish market return to a level which resembles the kind of activity just prior to the “crazy days” of 2006 and 2007.”
The main cities are already experiencing an upturn but Cameron is said it could take time to filter to peripheral towns.
He said: “Aldermore have definitely pitched in at the right time.”
Cameron said that he did not see a return to spiralling house prices because the Home Report acted as an effective mechanism for sense checking the real value of a property.
The Home Report was brought in in 2008 by the Scottish government but by that time it was too late to have any effect on the housing crisis.
Cameron said: “The Home Report has helped to keep a lid on house prices. Before its introduction, buyers would indicate their interest in a property with a bid over the asking price and a valuation report would be carried out which would undoubtedly reflect the higher asking price. But with multiple bidders all trying to win the property, and each obtaining their own report, valuations were climbing higher and higher with each bid.”
Cameron said in some instances estate agents would deliberately put a property on the market for much lower than its market value to create a bidding frenzy.
He added: “But the system is much more sensible now. The seller’s valuation gives a clear indication of what the property is worth and although people may want to offer over than amount it is usually only a small increase.”