House sales in the Highlands and islands have soared back to levels not seen since the global financial crisis started to bite seven years ago.
The number of properties changing hands jumped by 16% last year compared with 2012. But new figures have revealed that the number of houses on the market – or “active properties” – has fallen by 29% over the year, meaning they are selling more quickly than they are coming on the market.
The possibility of demand outstripping supply led to calls last night for more housebuilding in the north.
The Highland Solicitors Property Centre (HSPC) said there were 1,165 houses sold during 2013 compared to 1,004 in 2012 – an increase of 16%.
It is the first rise in annual sales since before the financial crisis started in 2007.
The total value of sales has also shot up by 15%.
Property worth about £188.8million was sold last year – compared with £183.7million total in 2012.
It is also the highest total since 2008, when £207.4million of property was sold.
The price of property also appears to be holding up, with the average house costing £162,089 – down just 0.6% on 2012, when the average was £163,012.
Sarah Woodcock, HSPC manager, said: “The 2013 figures are certainly encouraging, with the sales volume and value both up considerably on 2012, although the average price is down fractionally.
“Closer examination of the figures reveals that the number of active properties has fallen by 29%. This is a substantial reduction and it indicates that houses in the Highlands are now selling more quickly than the number of properties coming on to the market.
“This is an indication that some of the pent-up demand that has been building up over recent years is turning into sales.
“More people now feel they are able to make their move. This is the result of a number of factors, most notably easing of the mortgage supply and growing confidence from potential buyers in their own financial prospects.”
Highland MSP David Stewart welcomed the figures but said he wanted to see more information on the number of new houses being completed.
He said: “My main concern is that we ensure that young people have the chance to get that first step on the housing ladder.”
His views were echoed by Inverness-based economist Tony Mackay, who said that housing completions were dropping across Scotland.
He added: “The biggest problem here and elsewhere is building more houses. We need a big increase.”
He said that builders were struggling to get finance from the banks to begin construction.
The Highland Council’s blueprint for development in the Inner Moray Firth area has earmarked sites for 17,000 houses.
Today, councillors will discuss new population figures for the Highlands.
The number of people living in one Inverness council ward has doubled in 10 years.
A total of 15,214 people live in Inverness South – more than any other ward in the north.