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STV News
4 days ago
- Business
- STV News
Orkney house prices see highest rise in Scotland since pandemic
Orkney house prices face highest rise in Scotland since the pandemic skyrocketing by over 60% The average price of a house in Orkney has risen by over 60% in the last five years – the steepest rise of any council area in Scotland. According to figures from the UK House Price Index, Orkney's house prices have outpaced the Scottish average nearly three times. The rise seen in Orkney is quite a bit higher than the council areas with the next highest rises: Midlothian at 48% and City of Glasgow at 38%. According to analysis from the Office of National Statistics, Orkney's house prices dipped during the first year of the pandemic. But when the rises began, they were significant. In April, May, June and July 2021, property prices rose by over 30% each month. A wave of similarly steep hikes was seen in April, May, June and July 2022 as house prices rose by more than 20% in each of those months. The first reductions in house prices since December 2020 came in April 2023 and continued month-on-month until January 2024. However, these reductions were all under 11%, with prices only reducing by more than 10% twice during that period. Prices began to rise again in April last year, although at a far more modest rate that before. They steadily increased up to a peak of 14.3% rise in January this year. That escalation curbed slightly with a further 11.7% rise in February and 11.8% in March. So where does this leave Orkney house prices since the beginning of lockdown up to this year? At the beginning of lockdown, March 2020, the average house price in Orkney was £131,476. As of March this year, five years later, the provisional average house price as of March 2025 was £215,580. This is a 63.9% rise. Drawing a comparison with the average house prices in Scotland over the same time period, in March 2020 the average house price was £151,856. In March 2025, it was £186,000. That's a rise of 22.4% What about Orkney's islands cousins? Over the same five year period, Shetland saw a 26.1% rise in prices – not far off the Scottish average. Meanwhile, the Na h-Eileanan Siar council area saw a 36.2% rise. While Orkney may have seen the highest percentage rise, it doesn't have the highest average house price. That title belongs to East Renfrewshire, with an average house price of £295,545. Shetland also has a higher average price than Orkney despite it's more modest rise, at £229,663. It's worth bearing in mind that any statistics that come from Orkney can show wild swings. This is because it produces a lower data set than other larger areas. In this case, a small number of very expensive homes being sold could heavily affect Orkney's average house price. However, long term trends provide a more reliable picture. News of high house prices, while unpleasant, will come as no shock to many Orcadians trying to buy. Karen Allan is the founder and owner of K Allan Properties, a local estate agent. She began selling houses just before lockdown got under way. Before that she and her husband had been developing properties for years. As such, she has developed a good understanding of the local market over the last 20 years. 'Orkney has a strong market. 'A lot of stock is circulating between all the agents on the island consistently all year round. 'Pre-pandemic was a lot cheaper, there is no two ways about that. 'The prices have shot up to an unbelievable level.' Asked why this is, she said: 'During Covid, our rural lifestyle was extremely desirable. 'This resulted in properties selling at inflated prices. 'This naturally led to inflation on market data and home report valuations rose substantially as a result. 'Prices went a bit too high, and we started to see properties reduce across to the island. 'Stock took a bit longer to sell at certain stages, especially when the mortgage rates went very high. 'There was no choice but to stabilise this with a sensible starting point when going to market.' Asked about the effect this has all had on local buyers she said it has been a tough pill to swallow for them. 'It took a long time, but I feel the locals have sadly had no option but to accept the prices and the offers over price tags. 'I feel harsh saying this. It wasn't accepted easily in the beginning of the housing boom. 'It was hard at first as we were in an unprecedented market after lockdown. 'Locals were sadly being deflated with multiple rejections. It really was a harsh time for them. Despite this, she said she is continues to advise people on how to make a move. 'It's not impossible and my 19-year-old son making it onto the property ladder recently is testament to that. 'Ultimately, financial planning is key to achieving this and the bigger a deposit you have, the better chance you'll have of making it happen.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Metro
25-05-2025
- Business
- Metro
Map shows how much you need to earn to buy a home where you live
Buying your own home is a big step. But, depending on where you live in the UK, you might have it easier financially. We all know that London is by far the most expensive place to purchase a property. For example, if you want to own a home in the Kensington and Chelsea area, you'll have to beg your boss to up your annual salary to £214,750. However, it's not all doom and gloom. If you're based outside of London, or you're willing to up sticks and move to a cheaper part of the UK, it's likely you'll be able to snap up a pretty good deal. Property type will also play a big part: a flat vs a detached house will obviously decrease or increase the price. GoCompare recently carried out some research looking at where you can get the best bang for your buck. They found the salaries you need to buy a home in different towns and cities across the UK, plus the average price of a property in each area. This includes flats, terraced houses, semis and detached. You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from: – Award winning service from the UK's leading mortgage broker – Expert advisors on hand 7 days a week – Access to 1000s of mortgage deals from across the market Unlike many mortgage brokers, L&C won't charge you a fee for their advice. Find out how much you could borrow online Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. And to make things easier, they listed the most expensive and most affordable regions. House prices were taken from the UK House Price Index in June 2024. The monthly repayments were calculated based on a 90% mortgage with a 5.5% interest rate over 25 years . Average salaries were calculated assuming that monthly mortgage repayments take up one-third of take-home income. The average UK wage is £37,430, according to the Office for National Statistics (ONS). You'll notice that salaries in some areas are a lot less than the average. In contrast, others are astronomically higher. In other words, if you earn the average wage in lesser affluent parts of the country, purchasing a home won't be as much of a financial strain. Burnley in Lancashire came out as the most affordable area in the UK for each kind of property. You'll need to earn £14,426 a year for a flat (costing £72,510 on average), £18,940 for a terraced house (£95,196 on average), £27,214 for a semi (£136,780 on average) and £42,262 for a detached house (£212,414 on average). If you love the countryside, Burnley will be right up your street. The town is surrounded by the breathtaking Pennines: rolling hills, open heather moors, meadows, dales, tumbling rivers and waterfalls will be on your doorstep. Burnley is also a thriving market town and has a rich textile history. If you're a folklore fan, you'll be living in the location of the 1612 Pendle Witch Trials. 12 individuals were accused of witchcraft, with 10 executed by hanging. It's now one of England's most notorious witch trials. More of a football lover? Burnley Football Club is as passionate as they come. However, with the ONS revealing that semi-detached houses are the most popular type of dwelling for UK residents, we'll focus on them for the rest of this article. The second most affordable location was Middlesbrough. In this North Yorkshire town, you'll need an average salary of £28,549 to afford a £143,492 semi. In third place is Stoke-on-Trent. Here, a semi-detached costs £146,084, meaning you'll need to earn £29,065. At number four is Sunderland, a city 10 miles south-east of Newcastle upon Tyne. A salary of £29,366 is required to own a £147,597 house. Finally, the fifth most affordable area is Blackpool, where a £30,560 salary is expected for a £153,596 house. Of course, London takes the top spot for each property type. You'll need to earn £86,513 a year for a flat (costing £434,818 on average), £113,764 for a terraced house (£571,783 on average), £135,326 for a semi (£680,157 on average) and £205,405 for a detached house (£1,032,371 on average). When it comes to semis, Oxford gets the second place. Home to the prestigious university, the average house price here is £600,304, along with a salary of £119,439. More Trending Following just behind is Cambridge, the other major uni. Here, your wage should be £119,439 to afford a £591,569 property. Over the past few years, Brighton has been creeping up in price. According to GoCompare, the seaside Sussex city – which was recently voted the UK's most 'walkable' city – has an average house price of £522,764. The required wage is £104,011. Finally, from the bottom of the UK all the way to the top, Edinburgh in Scotland came in at number five. For £91,976 a year, you'll be able to afford a £462,275 semi. Happy house hunting! England Detached: £465,645Semi-detached: £295,486Terraced: £253,596 Flat: £251,481 Detached: £465,645Semi-detached: £295,486Terraced: £253,596 Wales Detached: £317,463Semi-detached: £210,229Terraced: £210,2293 Flat: £140,908 Detached: £317,463Semi-detached: £210,229Terraced: £210,2293 Scotland Detached: £340,435Semi-detached: £205,780Terraced: £164,901 Flat: £132,484 Detached: £340,435Semi-detached: £205,780Terraced: £164,901 Northern Ireland Detached: £280,908Semi-detached: £178,503Terraced: £129,596 Flat: £139,287 Source: GoCompare View More » MORE: Map reveals the most and least posh London boroughs — where does yours rank? MORE: UK town described as 'place of nightmares' named country's most boring place to live MORE: Everything you can afford at different levels of wealth – from private jets to housekeepers
Yahoo
18-04-2025
- Business
- Yahoo
London risks becoming ‘ageing city' as Labour hammers landlords
London risks becoming an 'ageing city' as Labour hammers landlords with red tape, experts have warned. Average private rents in London jumped by 9.1pc to £2,243 per month in April, according to the latest figures from the Office for National Statistics (ONS). The typical house price in the capital stands at £556,000, according to the latest UK House Price Index. Rents have been surging since the pandemic, with a tax raid on landlords and Angela Rayner's looming Renters' Rights Bill fuelling the problem. Labour's legislation is set to ban 'no fault' evictions and will make it harder to raise rents, prompting many landlords to sell-up. A slump in the supply of rental properties is fuelling surging rents and experts warned that high housing costs could push young people out of London, potentially undermining the capital's economy. 'You could have a situation with London where it becomes an aging city, and the average homeowner age in London keeps going up,' said Stacy Eden of RSM. 'What we're seeing in London, compared with the other great cities we have - the university towns, Manchester, Liverpool - is a professional population that is declining.' Mr Eden says more people in their 30s and 40s are moving out of London, partly driven by its high house prices. He said: 'It's been difficult for first-time buyers to afford a mortgage, so they're turned to the rental market. That demand has increased, from young professionals who don't want to move out of London but can't buy. 'If you're stuck in between those two stalls, you might start to think about the third option, which is moving out of London. And people are doing that.' London has traditionally been one of the youngest cities in the country as many young people move to the capital to start their careers. The average age of residents in London was 35 in the last census in 2021, compared to 40 across England as a whole. A steady stream of workers has helped power London's economy, which is much more productive than the rest of the economy. However, the rapid rise in housing costs since the pandemic threatens to bring London in line with the rest of the country and could undermine its economic dynamism. Tom Bill of Knight Frank agreed that if rents continue to increase, 'you may find that the demand shifts outside the M25 a little bit more'. Mr Bill said: 'Where people once might've considered renting rather than buying somewhere, as a plan 'B' - if plan 'B' is no longer necessarily on the table for so many people, then they'll increasingly look at plan 'C', which is Bristol or Manchester.' Angharad Trueman, president of ARLA Propertymark, which represents property agents, said: 'More and more tenants can't meet the affordability needed for these rental properties. It's getting to a point where every single month, significant new lets fall through because of affordability and bad credit issues. 'It's simple supply and demand. Rents are going up because we're seeing a reduction in landlord numbers. To fix this and stabilise rent for tenants, we need to fix the supply issue. 'We've got renters' rights reform looming, changes to EPCs, tax changes … It's all adding up to a picture that's making being a landlord more complicated and less profitable. 'Rents will continue to go up as more landlords leave. Until something's done to incentivise landlords to keep tenants for the long term and keep their rental properties, this is going to continue to happen.' Meera Chindooroy of the National Residential Landlords Association said: 'Rents across the capital are high because there are not enough homes to meet demand. 'The only way to address this is to develop pro-growth policies. … If changes are not made, many more landlords will simply exit the sector, leaving tenants with even less choice about where to live.' A spokesperson for the Ministry for Housing, Communities and Local Government said: 'We have inherited a serious housing crisis which has made the dream of homeownership feel like a distant reality for a generation of young people. 'Good landlords have nothing to fear from our Renters' Rights Bill that will level the playing field between landlords and private tenants by providing the latter with greater security by banning Section 21 'no fault' evictions, empowering tenants to challenge unreasonable rent hikes, and banning unfair bidding wars.'unfair bidding wars.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
18-04-2025
- Business
- Telegraph
London risks becoming ‘ageing city' as Labour hammers landlords
London risks becoming an 'ageing city' as Labour hammers landlords with red tape, experts have warned. Average private rents in London jumped by 9.1pc to £2,243 per month in April, according to the latest figures from the Office for National Statistics (ONS). The typical house price in the capital stands at £556,000, according to the latest UK House Price Index. Rents have been surging since the pandemic, with a tax raid on landlords and Angela Rayner's looming Renters' Rights Bill fuelling the problem. Labour's legislation is set to ban 'no fault' evictions and will make it harder to raise rents, prompting many landlords to sell-up. A slump in the supply of rental properties is fuelling surging rents and experts warned that high housing costs could push young people out of London, potentially undermining the capital's economy. 'You could have a situation with London where it becomes an aging city, and the average homeowner age in London keeps going up,' said Stacy Eden of RSM. 'What we're seeing in London, compared with the other great cities we have - the university towns, Manchester, Liverpool - is a professional population that is declining.' Mr Eden says more people in their 30s and 40s are moving out of London, partly driven by its high house prices. He said: 'It's been difficult for first-time buyers to afford a mortgage, so they're turned to the rental market. That demand has increased, from young professionals who don't want to move out of London but can't buy. 'If you're stuck in between those two stalls, you might start to think about the third option, which is moving out of London. And people are doing that.' London has traditionally been one of the youngest cities in the country as many young people move to the capital to start their careers. The average age of residents in London was 35 in the last census in 2021, compared to 40 across England as a whole. A steady stream of workers has helped power London's economy, which is much more productive than the rest of the economy. However, the rapid rise in housing costs since the pandemic threatens to bring London in line with the rest of the country and could undermine its economic dynamism. Tom Bill of Knight Frank agreed that if rents continue to increase, 'you may find that the demand shifts outside the M25 a little bit more'. Mr Bill said: 'Where people once might've considered renting rather than buying somewhere, as a plan 'B' - if plan 'B' is no longer necessarily on the table for so many people, then they'll increasingly look at plan 'C', which is Bristol or Manchester.' Angharad Trueman, president of ARLA Propertymark, which represents property agents, said: 'More and more tenants can't meet the affordability needed for these rental properties. It's getting to a point where every single month, significant new lets fall through because of affordability and bad credit issues. 'It's simple supply and demand. Rents are going up because we're seeing a reduction in landlord numbers. To fix this and stabilise rent for tenants, we need to fix the supply issue. 'We've got renters' rights reform looming, changes to EPCs, tax changes ... It's all adding up to a picture that's making being a landlord more complicated and less profitable. 'Rents will continue to go up as more landlords leave. Until something's done to incentivise landlords to keep tenants for the long term and keep their rental properties, this is going to continue to happen.' Meera Chindooroy of the National Residential Landlords Association said: 'Rents across the capital are high because there are not enough homes to meet demand. 'The only way to address this is to develop pro-growth policies… If changes are not made, many more landlords will simply exit the sector, leaving tenants with even less choice about where to live.' A spokesperson for the Ministry for Housing, Communities and Local Government said: 'We have inherited a serious housing crisis which has made the dream of homeownership feel like a distant reality for a generation of young people. 'Good landlords have nothing to fear from our Renters' Rights Bill that will level the playing field between landlords and private tenants by providing the latter with greater security by banning Section 21 'no fault' evictions, empowering tenants to challenge unreasonable rent hikes, and banning unfair bidding wars.' unfair bidding wars.'
