North Lanarkshire

Median price at August 2008: £138,036

General increase since Sept 2007: 2%

Projected increase to Sept 2009: 0%

Five-year increase: 96% (£70,586)

Ten-year increase: 157% (£53,795)

South Lanarkshire

Median price at August 2008: £156,589

General increase since Sept 2007: 1%

Projected increase to Sept 2009: 0%

Five-year increase: 85% (£84,541)

Ten-year increase: 170% (£58,065)

The complete Lanarkshire price guide

Like Fife in the east, we consider Lanarkshire to be a key county when trying to gauge the temperature of central Scotland’s housing markets. On the basis of this year’s submissions, it is a picture best summarised as “distinctly chilly”.

John McCabe, of Century 21 in Motherwell, claims that he has seen the total value of his office’s business decrease by 35% compared with this time last year due to a lack of houses coming to market. Neither buyers nor sellers, he says, seem prepared to commit themselves to trading homes for fear of catching a cold.

In recent times Lanarkshire has been a prime market for both first-time buyers and buy-to-let investors, but with inquiries from would-be landlords having fallen by 33% nationally and tighter lending restrictions effectively pricing out new owners, there is a log jam in the market at every level due to too few people getting on the ladder and even fewer marshalling the wherewithal to trade up.

McCabe says: “The market relies on activity at every level to stimulate demand further up the chain and, without first-time buyers, we are seeing the scenario where a large family home could take four to six months to sell. For most it is a ‘wait and see’ scenario.”

If you have funds in place and no home to sell, though, you are in a strong position to strike a bargain. This is especially true in the new-build sector, where McCabe says some national builders are working to profit margins of as little as £1,000 per unit in order to shift their stock of unsold new homes. As a result, owner-occupiers trying to sell their own new homes second-hand just can’t compete with the incentives being offered on box-fresh builders’ properties.

“It is definitely a time to buy if you can access money,” McCabe says. “The positives are all still here in Lanarkshire it is just that the financial picture is momentarily unclear. A two-bed family home with a garden will still fit most buyers’ profile and looks a solid enough investment.”

Jamie Lonsdale, who sells mainly in the hotspots of Bothwell and Hamilton, has a similar view.

“Until banks and the government institute a plan to reposition the mortgage market, sales will continue to be difficult.” Lonsdale confirms that cautious surveying and lending has effectively stalled his market.

There are even rumours of prospective buyers being offered loan-to-value ratios of 65% on some new-builds — implying these houses have been overpriced by 20% in the first place.

He adds: “The rules have changed and you have to sell first before you buy. But if you can promise a straightforwardly concluded missive, as a buyer, you are in a position to strike a bargain.

“If you have been in your current home for three years, you will be making money. Be happy with that. Once you are a buyer again, you will be more than compensated trading up.”

“The volume of transactions has dropped, and we are also seeing tactical offers being made below fixed prices.

“This is a buyers’ market but it is a sophisticated buyers’ market and you need to be well advised. If I have one piece of advice, it is: ‘Treat any genuine offer seriously if you want to move on.’

“There are bargains to be had on the buying side — at least until the inflexible lending situation is addressed.”

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