Residential Property Prices and Increase

The RLA reports that the London area has not been the only part of the UK to experience impressive increases in residential property values and sales over the past year. According to the most recent statistics, the real estate sector in much of Scotland and parts of northern England is performing well, with the highest prices measured in Edinburgh. The Registers of Scotland found that the average price of a home rose by 5.3% during the first part of the year, compared to figures from early 2009. Even more impressively, the number of property sales has soared by 17.1%.

The encouraging news for homeowners and landlords is that prices and sales in Scotland have been increasing for five straight months. But many experts continue to caution against excessive confidence and optimism. The rise in house sales also suggests that more properties are hitting the market at a time when demand is not growing by nearly the same proportion. As such, a market slowdown is a possibility, especially towards the end of the year and in early 2011.