House Prices and Time-to-Sale in the West of Scotland

House Prices and Time-to-Sale in the West of Scotland January 2006 Dr Gwilym Pryce Department of Urban Studies, University of Glasgow www.gwilympryce.co.uk Contents: Page Current House Price Levels... 1 Price Change Since Quarter 3... 1 Annual Change... 1 2005 Average Annual Change... 1 Cumulative Change Since 1999... 2 Appendices... 2 A. Constant Quality House Prices...A-i B. Unadjusted House Prices...B-i C. Time-to-Sale... C-i D. Number of Sales... D-i E. Price Variation in Each Quarter...E-i F. Asking-Selling Price Spread...F-i Current House Price Levels East Renfrewshire, East Dunbartonshire and the West End had the highest house prices in quarter 3 of 2005 ( 198,000, 161,000 and 148,000). Properties are cheapest in the Paisley, East End and North Glasgow ( 96,000, 79,700, and 76,600). 1 Price Change Since Quarter 3 The biggest gains since quarter 3 of 2005 have been in East Renfrewshire (4.2%), Paisley (3.9%), East Dunbartonshire (3.8%) and North Ayrshire (3.5%) and Renfrewshire (3.1%). Prices remained 1 These figures are based on the simple average selling price as these are easiest to interpret when comparing price levels (see Appendix B). Figures for price changes (rather than levels) referred to elsewhere in the report are based on constant quality prices (see Appendix A) these are standardised to control for differences in dwelling attributes between areas. Housing Market Commentary No.5, January 2006 relatively static in the West End, South Side, South Lanarkshire and East Kilbride. In a number of areas, however, prices were down on quarter 3, including the East End (-1.2%), North Lanarkshire (-1.6%) and North Glasgow (-2.4). Time-to-sale rose in most areas compared to quarter 3 with increases of over 20% in selling time in Paisley, South Lanarkshire, North Ayrshire, and East Kilbride. Selling time fell for East Renfrewshire (-13%) and North Glasgow (-36%) but the limited number of sales in these areas in quarter 4 (34 and 38 respectively 2 ) means that these estimates are based on relatively small samples (see Figure D-1). In all but two areas (East Kilbride and the East End), the number of sales fell compared with quarter 3, which is typical of this time of year (the number of transactions generally trails off in the build-up to Christmas). The largest falls in sales compared with quarter 3 were in East Renfrewshire (-34.6), West End (-42.2%) and East Dunbartonshire (-44.2%). Annual Change In Strathclyde as a whole, constant quality prices rose by 6.9% (see Figure A-3), compared with 5.2% in Glasgow. Relative to the same quarter last year, the highest levels of house price inflation were in East Renfrewshire (23.8%), North Lanarkshire (16.5%), and Paisley (14.0%). The lowest increases have been in Renfrewshire (4.4%) and South Lanarkshire (3.9%). No area experienced a fall in prices over this period. 2005 Average Annual Change Perhaps the most reliable measure of house price inflation is the average annual inflation figures across all four quarters of 2005. For Strathclyde as a whole, the 2 These are the number of GSPC sales used in our analysis rather than the total number of sales. Some transactions were excluded because the data record needed for other aspects of the analysis was incomplete. 1

average house price inflation rate in 2005 was 9.2%. Ranking all areas by this measure, the following table lists North Lanarkshire as the highest inflation area in 2005 (average inflation of 19.7%), followed by East Renfrewshire (13.3%) and the East End (10.4%). The lowest three areas were the South Side (5.4%), the West End (4.5%) and East Kilbride (2.2%). Notice that again the figures show that no area experienced a fall in prices over this period. Annual House Price Inflation Ranked by Average Across All Four Quarters of 2005 2005 N. Lanarkshire 19.7% E. Renfrewshire 13.3% East End 10.4% N. Ayrshire 9.6% Strathclyde 9.2% Renfrewshire 8.8% E. Dunbartonshire 8.7% Paisley 8.6% N. Glasgow 8.4% Glasgow 7.2% S. Lanarkshire 6.7% South Side 5.4% West End 4.5% E. Kilbride 2.2% Cumulative Change Since 1999 If we consider the average of this measure over the past six years (see table below), we can see that the ordering changes. East Renfrewshire (17.7%), North Ayrshire (15.0%), Renfrewshire (14.8%) and North Lanarkshire (14.8%) have the highest average inflation rates. This ordering closely reflects the sequence obtained by considering the cumulative rise in constant quality house prices since quarter 1 of 1999 (see Figure A-4). East Renfrewshire again comes out as the highest inflation area (167.3% increase since 1999q1), followed by Renfrewshire (139.0%), and North Lanarkshire (133.3%). The areas with the lowest cumulative house price inflation were the inner-suburbs: South Side (93.7%), East End (91.2%), North Glasgow (82.2%) and the West End (80.8%). Annual House Price Inflation Ranked by Average over 6 years: Average E. Renfrewshire 17.7% N. Ayrshire 15.0% Renfrewshire 14.8% N. Lanarkshire 14.8% E. Dunbartonshire 14.3% S. Lanarkshire 13.7% Paisley 12.7% E. Kilbride 12.4% Strathclyde 12.0% East End 11.7% South Side 11.5% N. Glasgow 10.7% Glasgow 10.1% West End 9.2% Appendices The appendices that follow are based on GSPC data from 1999 quarter 1 to 2005 quarter 4. Dr Gwilym Pryce, BA Hons, MSc (Econ), PhD (Econ), is the Deputy Director of the Graduate School (Faculty of Social Sciences), the Faculty Senior Lecturer in Social Science Methodology, and a Senior Lecturer in Housing Economics. He is based in the Department of Urban Studies, University of Glasgow. The Department of Urban Studies is a 5 rated research department reflecting its national and international status in the areas of housing and urban research. It is the home of three national research centres: (1) the ESRC Centre for Neighbourhood Research (in collaboration with the University of Bristol), (2) the Centre for Public Policy for the Regions (in collaboration with the following departments of the University of Glasgow: Urban Studies, Economics, Geography and Business & Management; and the following departments of Strathclyde University: Economics / the Fraser of Allander Institute, and Government and the European Policies Research Centre) and (3) the Scottish Centre for Research on Social Justice (in collaboration with the Universities of Bristol and Aberdeen respectively). The analysis is funded by GSPC (Glasgow Solicitors Property Centre) and is based on the GSPC database of property transactions. GSPC has over 200 member firms of solicitors that sell over 8,500 homes a year worth over 775 million. GSPC covers all of West Central Scotland from South Ayrshire and South Lanarkshire to North Lanarkshire and Argyll & Bute. The analysis is based on a total sample of 37,122 GSPC sales since 1999. 2

A. Constant Quality House Prices Figure A-1 Current CQ House Prices 2005q4 ( 000s) E. Renfrewshire West End E. Dunbartonshire Glasgow Strathclyde South Side S. Lanarkshire Renfrewshire N. Ayrshire East Kilbride Paisley N. Lanarkshire East End North Glasgow 137.7 123.8 119.0 116.5 110.9 101.9 99.6 96.9 93.2 89.9 89.5 85.6 165.9 162.3 0 50 100 150 200 (Source: GSPC Sales Data 2005q4) Figure A-2 Quarterly CQ House Price Inflation 2005q4 (% Increase Since Previous Quarter) E. Renfrewshire Paisley E. Dunbartonshire N. Ayrshire Renfrewshire West End South Side S. Lanarkshire East Kilbride East End N. Lanarkshire Strathclyde North Glasgow Glasgow 3.6 1.2 1.6 2.1 2.4 0.2 0.2 1.3 1.0 4.2 3.9 3.8 3.5 3.1 4 2 0 2 4 (Source: GSPC Sales Data 1999q1 to 2005q4) A-i

Figure A-3 Annual CQ House Price Inflation 2005q4 (% Increase Since Same Quarter Last Year) E. Renfrewshire N. Lanarkshire Paisley N. Ayrshire West End East End E. Dunbartonshire North Glasgow Strathclyde East Kilbride South Side Glasgow Renfrewshire S. Lanarkshire 9.2 8.1 7.8 7.4 6.9 6.8 6.1 5.2 4.4 3.9 12.0 14.0 16.5 23.8 0 5 10 15 20 25 (Source: GSPC Sales Data 1999q1 to 2005q4) Figure A-4 Cumulative Rise in CQ House Prices (% Increase Since 1999q1) E. Renfrewshire Renfrewshire N. Lanarkshire E. Dunbartonshire Paisley N. Ayrshire S. Lanarkshire Strathclyde East Kilbride South Side East End North Glasgow West End Glasgow 98.8 97.7 93.7 91.2 82.2 80.8 76.0 139.0 133.3 131.4 130.1 128.5 124.0 167.3 0 50 100 150 200 (Source: GSPC Sales Data 1999q1 to 2005q4) A-ii

Figure A-5 Constant Quality House Prices in Strathclyde (1999q1 to 2005q4) 60000 80000 100000 120000 (Source: GSPC Sales Data 1999q1 to 2005q4) Figure A-6 0 50000 100000 150000 200000 CQ House Prices in Strathclyde Submarkets (1999q1 to 2005q4) West End E.Dunb E.Renf E.Kilbride (Source: GSPC Sales Data 1999q1 to 2005q4) A-iii

Figure A-7 CQ House Prices in Glasgow Submarkets (1999q1 to 2005q4) 50000 100000 150000 West End South Side East End North Side (Source: GSPC Sales Data 1999q1 to 2005q4) Figure A-8 Constant Quality House Prices in Strathclyde 60000 80000 100000 120000 A-iv

Figure A-9 60000 80000 100000 120000 140000 Constant Quality House Prices in Glasgow Figure A-10 80000 100000 120000 140000 160000 Constant Quality House Prices in West End A-v

Figure A-11 Constant Quality House Prices in East End 40000 50000 60000 70000 80000 90000 Figure A-12 60000 80000 100000 120000 Constant Quality House Prices in South Side A-vi

Figure A-13 50000 60000 70000 80000 90000 Constant Quality House Prices in North Glasgow Figure A-14 60000 80000 100000 120000 140000 Constant Quality House Prices in E. Dunbartonshire A-vii

Figure A-15 Constant Quality House Prices in E. Renfrewshire 60000 80000 100000120000140000160000 Figure A-16 Constant Quality House Prices in Paisley 40000 50000 60000 70000 80000 90000 A-viii

Figure A-17 40000 60000 80000 100000 Constant Quality House Prices in East Kilbride Figure A-18 40000 60000 80000 100000 Constant Quality House Prices in Renfrewshire A-ix

Figure A-19 40000 60000 80000 100000 120000 Constant Quality House Prices in S. Lanarkshire Figure A-20 40000 50000 60000 70000 80000 90000 Constant Quality House Prices in N. Lanarkshire A-x

Figure A-21 40000 60000 80000 100000 Constant Quality House Prices in N. Ayrshire A-xi

B. Unadjusted House Prices Figure B-1 Current Unadjusted Mean House Price 2005q4 ( 000s) E. Renfrewshire E. Dunbartonshire West End S. Lanarkshire Renfrewshire Strathclyde N. Lanarkshire East Kilbride Glasgow N. Ayrshire South Side Paisley East End North Glasgow 79.7 76.6 126.6 123.5 122.4 119.4 117.8 113.9 109.9 106.9 96.0 161.4 148.0 197.9 0 50 100 150 200 (Source: GSPC Sales Data 2005q4) Figure B-2 Quarterly % Rise in Unadjusted Mean House Price (% Increase Since Previous Quarter) E. Renfrewshire Renfrewshire West End South Side E. Dunbartonshire East Kilbride S. Lanarkshire N. Lanarkshire Strathclyde N. Ayrshire Glasgow East End Paisley North Glasgow 11.4 8.7 6.9 4.1 1.8 1.9 2.2 1.5 1.3 1.2 0.7 5.7 4.7 4.0 10 5 0 5 (Source: GSPC Sales Data 1999q1 to 2005q4) B-i

Figure B-3 Annual % Rise in Unadjusted Mean House Price (% Increase Since Same Quarter Last Year) E. Renfrewshire Paisley N. Lanarkshire West End E. Dunbartonshire Glasgow Strathclyde South Side N. Ayrshire East End Renfrewshire North Glasgow S. Lanarkshire East Kilbride 12.6 1.6 3.2 11.4 10.6 7.9 7.5 7.3 7.3 17.0 15.0 23.4 31.7 28.5 10 0 10 20 30 (Source: GSPC Sales Data 1999q1 to 2005q4) Figure B-4 Cumulative Rise in Unadjusted Mean House Price (% Increase Since 1999q1) Renfrewshire West End N. Lanarkshire Glasgow East End Strathclyde N. Ayrshire South Side E. Dunbartonshire S. Lanarkshire E. Renfrewshire East Kilbride Paisley North Glasgow 163.6 156.1 138.9 136.6 129.9 127.2 122.4 120.0 118.6 113.9 111.8 105.7 102.1 95.0 0 50 100 150 200 (Source: GSPC Sales Data 1999q1 to 2005q4) B-ii

Figure B-5 40000 60000 80000 100000 120000 140000 Average House Prices in Strathclyde Figure B-6 40000 60000 80000 100000 120000 Average House Prices in Glasgow B-iii

Figure B-7 Average House Prices in West End 60000 80000 100000 120000 140000 Figure B-8 20000 40000 60000 80000 100000 Average House Prices in East End B-iv

Figure B-9 40000 60000 80000 100000 120000 Average House Prices in South Side Figure B-10 40000 50000 60000 70000 80000 90000 Average House Prices in North Glasgow B-v

Figure B-11 50000 100000 150000 200000 Average House Prices in E. Dunbartonshire Figure B-12 50000 100000 150000 200000 Average House Prices in E. Renfrewshire B-vi

Figure B-13 40000 60000 80000 100000 120000 Average House Prices in Paisley Figure B-14 Average House Prices in East Kilbride 0 50000 100000 150000 B-vii

Figure B-15 40000 60000 80000 100000 120000 Average House Prices in Renfrewshire Figure B-16 50000 100000 150000 Average House Prices in S. Lanarkshire B-viii

Figure B-17 Average House Prices in N. Lanarkshire 40000 60000 80000 100000 120000 Figure B-18 40000 60000 80000 100000 120000 140000 Average House Prices in N. Ayrshire B-ix

C. Time-to-Sale Figure C-1 Current Time to Sale Median No. of Days on the Market (2005q4) E. Dunbartonshire N. Lanarkshire Paisley West End Strathclyde Glasgow East End South Side S. Lanarkshire East Kilbride Renfrewshire N. Ayrshire North Glasgow E. Renfrewshire 28 26 26 36 36 36 35 35 34 33 44 43 42 54 0 20 40 60 (Source: GSPC Sales Data 2005q4) Figure C-2 Quarterly % Change in Median Time to Sale (% Increase Since Previous Quarter) East Kilbride N. Ayrshire S. Lanarkshire Paisley South Side N. Lanarkshire E. Dunbartonshire West End Strathclyde Renfrewshire Glasgow East End E. Renfrewshire North Glasgow 35.8 13.3 2.9 0.0 0.0 0.0 7.7 30.8 27.3 25.0 21.4 16.7 16.0 14.9 40 20 0 20 40 (Source: GSPC Sales Data 1999q1 to 2005q4) C-i

Figure C-3 Annual % Change in Median Time to Sale (% Increase Since Same Quarter Last Year) N. Lanarkshire East Kilbride Paisley E. Dunbartonshire Renfrewshire West End Strathclyde South Side S. Lanarkshire N. Ayrshire Glasgow East End North Glasgow E. Renfrewshire 29.7 36.6 3.1 0.0 0.0 0.0 0.0 3.4 10.0 16.3 18.1 12.5 30.8 45.0 40 20 0 20 40 (Source: GSPC Sales Data 1999q1 to 2005q4) Figure C-4 Cumulative Change in Median Time to Sale (% Increase Since 1999q1) E. Dunbartonshire West End N. Lanarkshire East Kilbride South Side Glasgow Strathclyde Renfrewshire N. Ayrshire S. Lanarkshire Paisley E. Renfrewshire East End North Glasgow 74.6 76.1 76.5 77.2 77.5 80.0 81.6 82.1 82.7 83.0 83.1 88.3 53.4 57.4 80 60 40 20 0 (Source: GSPC Sales Data 1999q1 to 2005q4) C-ii

Figure C-5 0 50 100 150 200 Median Time to Sale in Strathclyde Figure C-6 0 50 100 150 200 Median Time to Sale in Glasgow C-iii

Figure C-7 20 40 60 80 100 Median Time to Sale in West End Figure C-8 Median Time to Sale in East End 0 50 100 150 200 250 C-iv

Figure C-9 Median Time to Sale in South Side 0 50 100 150 200 Figure C-10 0 50 100 150 200 250 Median Time to Sale in North Glasgow C-v

Figure C-11 20 40 60 80 100 120 Median Time to Sale in E. Dunbartonshire Figure C-12 Median Time to Sale in E. Renfrewshire 0 50 100 150 C-vi

Figure C-13 0 50 100 150 200 250 Median Time to Sale in Paisley Figure C-14 0 50 100 150 200 Median Time to Sale in East Kilbride C-vii

Figure C-15 0 50 100 150 200 Median Time to Sale in Renfrewshire Figure C-16 Median Time to Sale in S. Lanarkshire 0 50 100 150 200 C-viii

Figure C-17 0 50 100 150 200 Median Time to Sale in N. Lanarkshire Figure C-18 Median Time to Sale in N. Ayrshire 0 50 100 150 200 C-ix

D. Number of Sales Used in the Analysis Figure D-1 Number of GSPC Sales 2005q4 West End 219 South Side 214 Renfrewshire 170 East End 129 S. Lanarkshire 124 N. Lanarkshire 72 N. Ayrshire 63 E. Dunbartonshire 63 Paisley 42 North Glasgow 38 E. Renfrewshire 34 East Kilbride 16 0 50 100 150 200 (Source: GSPC Sales Data 2005q4) Figure D-2 Quarterly % Change in Number of GSPC Sales (% Increase Since Previous Quarter) East Kilbride East End North Glasgow Renfrewshire S. Lanarkshire South Side N. Ayrshire Strathclyde Glasgow Paisley N. Lanarkshire E. Renfrewshire West End E. Dunbartonshire 42.2 44.2 24.1 26.7 28.0 29.0 31.1 33.3 34.6 9.5 14.6 16.8 4.9 23.1 40 20 0 20 (Source: GSPC Sales Data 1999q1 to 2005q4) D-i

Figure D-3 Annual % Change in Number of GSPC Sales (% Increase Since Same Quarter Last Year) East Kilbride North Glasgow East End West End N. Ayrshire S. Lanarkshire Glasgow Renfrewshire Strathclyde Paisley South Side E. Renfrewshire E. Dunbartonshire N. Lanarkshire 15.2 13.2 11.7 3.3 0.8 1.6 5.6 6.5 6.7 8.5 12.8 22.2 26.5 128.6 50 0 50 100 150 (Source: GSPC Sales Data 1999q1 to 2005q4) Figure D-4 Cumulative Change in Number of GSPC Sales (% Increase Since 1999q1) East End Renfrewshire West End Glasgow N. Ayrshire E. Renfrewshire East Kilbride South Side Paisley Strathclyde North Glasgow E. Dunbartonshire N. Lanarkshire S. Lanarkshire 6.8 17.2 17.9 65.8 61.9 60.0 52.9 50.0 47.7 40.7 89.6 110.6 139.4 158.0 0 50 100 150 (Source: GSPC Sales Data 1999q1 to 2005q4) D-ii

Figure D-5 Number of Sales in Strathclyde 600 800 1000 1200 1400 1600 Figure D-6 200 400 600 800 1000 Number of Sales in Glasgow D-iii

Figure D-7 100 200 300 400 Number of Sales in West End Figure D-8 0 50 100 150 200 Number of Sales in East End D-iv

Figure D-9 100 200 300 400 Number of Sales in South Side Figure D-10 Number of Sales in North Glasgow 20 40 60 80 D-v

Figure D-11 40 60 80 100 120 140 Number of Sales in E. Dunbartonshire Figure D-12 Number of Sales in E. Renfrewshire 0 20 40 60 80 D-vi

Figure D-13 Number of Sales in Paisley 30 40 50 60 70 Figure D-14 Number of Sales in East Kilbride 0 5 10 15 20 D-vii

Figure D-15 50 100 150 200 250 Number of Sales in Renfrewshire Figure D-16 100 150 200 250 300 Number of Sales in S. Lanarkshire D-viii

Figure D-17 50 100 150 200 250 Number of Sales in N. Lanarkshire Figure D-18 Number of Sales in N. Ayrshire 40 60 80 100 120 D-ix

E. Price Variation in Each Quarter Figure E-1 Current Standard Deviation of Selling Price SD of GSPC Prices for 2005q4 Measured in 000s West End E. Renfrewshire Strathclyde Renfrewshire Glasgow E. Dunbartonshire East Kilbride N. Lanarkshire S. Lanarkshire South Side N. Ayrshire Paisley North Glasgow East End 39.9 35.8 33.0 69.4 69.1 67.9 65.4 65.4 65.4 61.7 57.0 53.5 83.0 81.1 0 20 40 60 80 (Source: GSPC Sales Data 2005q4) Figure E-2 Quarterly % Change in Variability of Selling Price (% Rise in Standard Deviation Since Previous Quarter) West End South Side N. Lanarkshire Glasgow Strathclyde S. Lanarkshire E. Renfrewshire Renfrewshire East End E. Dunbartonshire N. Ayrshire East Kilbride North Glasgow Paisley 39.9 22.0 23.5 13.0 15.7 2.1 2.4 5.4 5.6 6.0 6.5 14.4 13.4 12.1 40 20 0 20 E-i

Figure E-3 Annual % Change in Variability of Selling Price (% Rise in Standard Deviation Since Same Quarter Last Year) West End N. Lanarkshire Glasgow E. Dunbartonshire Strathclyde South Side North Glasgow Renfrewshire East End E. Renfrewshire N. Ayrshire S. Lanarkshire East Kilbride Paisley 6.0 6.6 7.3 11.9 12.6 15.5 22.6 26.9 11.7 9.5 5.2 21.8 35.7 34.7 40 20 0 20 40 Figure E-4 Cumulative Change in Variability of Selling Price (% Rise in Standard Deviation Since 1999q1) West End N. Lanarkshire North Glasgow Renfrewshire Glasgow Strathclyde South Side S. Lanarkshire N. Ayrshire East End E. Dunbartonshire East Kilbride Paisley E. Renfrewshire 56.2 47.7 40.6 38.7 101.4 89.0 85.1 80.2 123.5 162.1 213.4 205.5 203.8 201.6 0 50 100 150 200 E-ii

Figure E-5 Standard Deviation of House Prices in Strathclyde 30000 40000 50000 60000 70000 80000 Figure E-6 30000 40000 50000 60000 70000 Standard Deviation of House Prices in Glasgow E-iii

Figure E-7 20000 40000 60000 80000 100000 Standard Deviation of House Prices in West End Figure E-8 Standard Deviation of House Prices in East End 15000 20000 25000 30000 35000 40000 E-iv

Figure E-9 20000 40000 60000 80000 100000 120000 Standard Deviation of House Prices in South Side Figure E-10 10000 20000 30000 40000 50000 Standard Deviation of House Prices in North Glasgow E-v

Figure E-11 0 50000 100000 150000 Standard Deviation of House Prices in E. Dunbartonshire Figure E-12 0 50000 100000 150000 Standard Deviation of House Prices in E. Renfrewshire E-vi

Figure E-13 Standard Deviation of House Prices in Paisley 20000 40000 60000 80000 100000120000 Figure E-14 0 50000 100000 150000 Standard Deviation of House Prices in East Kilbride E-vii

Figure E-15 20000 40000 60000 80000 100000 Standard Deviation of House Prices in Renfrewshire Figure E-16 0 50000 100000 150000 200000 Standard Deviation of House Prices in S. Lanarkshire E-viii

Figure E-17 20000 30000 40000 50000 60000 70000 Standard Deviation of House Prices in N. Lanarkshire Figure E-18 0 50000 100000 150000 Standard Deviation of House Prices in N. Ayrshire E-ix

F. Asking-Selling Price Spread The following two maps show the difference between asking price and selling price as a proportion of asking price. The colour scheme is graded on percentiles, where those areas in the lowest percentiles of proportional difference between asking and selling price are coloured dark blue and those in the highest percentiles are coloured white. In other words, the spread between asking and selling price is greatest in the white areas, and smallest in the blue areas. The first map is based on combined data from 1999 and 2000. The second map is based on data for 2005. F-i

Figure F-1 Asking-Selling Price Spread (1999-2000) F-ii

Figure F-2 Asking-Selling Price Spread (2005) F-iii