Property boom in Caithness

Covid restrictions may be back, unemployment rising and many businesses struggling to make ends meet but estate agents in Caithness are bucking the trend and reporting a surge in demand for property.

The doom and gloom of lockdown is not reflected in the property market with some sales going "20 per cent over the asking price", according to Georgesons estate agents in Wick.

Declan McGinley, associate solicitor at Georgesons said: “Over the course of the past few months there has been a major surge in first time buyers.

"The main type of purchase tends to be a new build, due largely in part to the Help to Buy Scheme currently run by the Scottish Government, but there are also others making use of the First Time Buyers Home Scheme, which was recently introduced, to allow buyers to opt for an older or 'classic' property."

Yvonne Fitzgerald runs a property agency based in Thurso and says that the booming market has led to her employing extra staff.

"The market at the moment is booming for larger properties and house prices in Wick and Thurso have risen by approximately £2000 over the last three months," she said.

"I have taken on two more staff, and we now have one of the largest estate agencies in the Highlands. There is also a [qualified] mortgage advisor starting within the next week, as well as an insurance broker, which will take our team of staff up to six."

Mrs Fitzgerald said the people buying properties are a mix of locals and others from outside the county. "We're selling more larger properties and the smaller end of the market is a bit slower because the banks have increased the deposits."

She thinks that Covid may have impacted the lower end of the market with house prices under £100,000 but over that amount "the market is quite buoyant".

"There have been a few sales going to closing dates and achieving in excess of thirty thousand pounds over the asking price. The lower end of the market is slightly slower due to the higher deposits needed by the banks but I would expect to see more activity there when the banks start lending again properly in the next six months."

In Wick, Bruce de Wert who runs Georgesons Estate Agency, along with Karen Robertson, said many properties are receiving offers "on the same day as they are listed" and that "offers are coming in on a daily basis".

Mr de Wert believes the remoteness of Caithness may appeal to some of the English buyers he has dealt with.

"Open and green areas are a very scarce commodity in the UK and people, in light of the Covid pandemic, may look to this as being a higher priority for them."

Simon Rubinsohn, chief economist with the Royal Institution of Chartered Surveyors commented: "The latest RICS survey provides firm evidence of a strong uplift in activity in the housing market which should help support the wider economy gain traction over the coming months. More of a concern is the pick-up in prices which could intensify issues around affordability in some parts of the country.”

Mr de Wert said the surge in demand may lead to a situation where there are not enough properties to satisfy the demand.

"Great news for sellers but, alas, not for buyers. I would say, think about buying now as demand may push up prices and decrease supply."

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