Highlands and Islands house prices rose 7% as sales in the region hit an eight-year high in 2016, according to new estate agency figures.
At £199million, the overall value of sales by the Highland Solicitors Property Centre (HSPC) last year was up 12% on 2015 and the highest annual total since 2008.
The number of properties sold by the firm rose by 4% to 1,173 during the period, with the average price climbing to £170,359.
Releasing the figures yesterday, HSPC manager, Sarah Woodcock, said while economic conditions made property market prospects “a bit of a guessing game,” the company hoped for another year of steadily growing confidence.
Despite the sales increases, HSPC, which represents around 34 solicitor estate agents, said it had seen a 9% drop in the number of properties being added to its register, which it said reflected caution among sellers.
Ms Woodcock said: “Interest in the Highlands and Islands market is strong, as indicated by a 29% increase in visitors to our website over the past year. The continual increase of unique visitors to the website shows the continued growing demand for property.
“The strong total sales value and the rise in average prices is a good indicator that the Highlands property market over 2016 has been stable but the low insertions mean low stocks so buyers have less to choose from, this may continue to push the sales in 2017.”
HSPC said Brexit and the “general political climate” may be affecting confidence to launch a property for sale, but the firm expects potential sellers to come to the market early in 2017, particularly in the Spring.
The company added that the second home tax, introduced across Scotland last April, had an impact on potential buy-to-let investors and buyers.
According to the HSPC, the most cited barrier for those thinking of buying property is the new additional Land and Buildings Transaction Tax, (LBTT). The LBTT supplement means buyers have to keep funds to cover the new tax if buying before selling their existing property.
Ms Woodcock added: “Looking ahead in 2017, a lot will depend on the general economic conditions. While the UK is relatively stable compared to other parts of Europe, it is still a bit of a guessing game.
“We may also see the interest rates increase later on in the year so it’s still a great time to buy and sell with continued record low interest rates. Building on the stable figures we produced in 2016, we certainly hope for another year of steadily growing confidence.”
