High hopes Inverness will experience economic boom on the back of a surge in house sales and new builds
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A buoyant housing market could trigger an economic boom for Inverness.
House sales in the Highland capital soared by nearly 50 per cent in January compared to the same period last year.
The numbers of properties being registered for sale with agents has also rocketed and builders are queuing up to build new homes to meet the demand.
Business leaders said today that the figures were a real indicator that the city economy was on the up.
Highland Solicitors Property Centre (HSPC) manager Sarah Woodcock said they had seen a 44 per cent increase in sales this January compared to last year, while the number of properties being registered for sale was up by 46 per cent.
And while average prices remained fairly static at around £152,000, she said this masked a very healthy picture in terms of sales of flats and other typical first-time buyer options.
“We normally expect business to ramp up towards Easter but our property experts from the solicitor firms are out in force early with both buyers and sellers,” she said.
Mike Smith, manager of Inverness Business Improvement District (Bid), said: “It is great news that things are looking so healthy on the housing front as it’s a good indicator of where things are at generally in terms of the economy, both in terms of the employment situation and more widely.
“It’s a vibrant market offering a lot of choice and I hope it can continue both for locals looking to get on the property ladder or take a step up, and the many people moving into the area from other parts because they recognise how much Inverness and the wider Highlands have to offer.”
City economist Tony Mackay said: “It is certainly very encouraging that the building that is taking place is proving so successful, with all activity helping to stimulate the economy generally.”
He sounded a note of caution though, pointing out that the announcement of development plans such as that by Tulloch Homes this week that it is looking to build 800 new homes on land between Dores Road and the River Ness over the next 10 years are not the same as actually building the houses.
Gregor Simpson, a partner with Shepherd Chartered Surveyors, said: “Despite the much commented on economic uncertainty surrounding Brexit, insofar as the housing market in Inverness and the Highlands is concerned the debate appears to have had no discernible impact.”
He singled out a range of housing developments currently under way as evidence that demand for new housing is as high as ever, including the Essich Meadows site being created by Kirkwood Homes in Culduthel where all 15 luxury homes sold out within five weeks of being released for sale.
The Aberdeen-based firm’s managing director, Colin Crombie, said: “The outstanding response to our Essich Meadows development in Inverness highlights the demand for high quality housing in this area.
“Our expansion into the Highland region was in line with our company growth and to help alleviate the need for housing. We are delighted that our new home owners have managed to find their ideal home.”
Similarly, the first three phases of the 315-home Ness Castle development by Barratt close to Loch Ness have also now sold out and work is progressing well on the first stage of the massive Tornagrain new town development between Inverness and Nairn.
More than 60 homes are expected to be completed by the end of the year, with more than half of those already reserved.
The huge, carefully planned long-term project will see more than 5000 homes created for around 12,000 residents over several decades.
Mr Simpson said: “Homes are typically selling at Home Report valuation or slightly more in Inverness at present, with a good number of properties selling at closing date – a phenomenon that has been unheard of in the local market for several years.
“The market is certainly not immune to economic downturns, but it does not tend to experience the peaks and troughs of markets elsewhere in Scotland. Rather, when it comes to housing in Inverness and the Highlands the market tends to carry on regardless.
