Spotlight:
Scotland's Residential Property Market

Scotland's Residential Property Market
Scotland's Residential Property Market

1 March 2017, words by Faisal Choudhry

Scotland's residential market is the strongest it has been since 2008

■ The number of transactions increased by 3% in 2016 and was 9% higher than the 10-year annual average. This took place despite a drop in mortgage lending and slowdown in the Aberdeen area.

■ Lack of supply in central hotspots is fuelling price growth, which is now filtering through to Scotland’s heartland of Tayside, Stirlingshire and Fife. Both prices and transactions in rural locations are stable.

 

■ A reduction in selling times across Scotland’s cities and exceptional monthly off-plan sales rates in Edinburgh and Glasgow are resulting in supply constraints in the new build market.

■ The market below £400,000 continues to be supported by favourable rates of Land and Buildings Transaction Tax (LBTT). However, LBTT is constraining the market from £600,000 to £1 million. This is particularly pertinent in country locations.

■ Scottish property is attracting more top-end buyers from outside Scotland, helped by favourable exchange rates. In times of uncertainty, high net worth investors are drawn to prime central hotspots, which are considered safe investments and good value for money.

■ We expect strong demand across Edinburgh and Glasgow, especially for high quality, well presented properties, close to good schools and transport links.

Articles from Spotlight: Scotland's Residential Property Market

Strongest market since 2008

The number of transactions increased by 3% last year and was 9% higher than the 10-year annual average

Outlook for Scotland

Realistic pricing is key to success in uncertain times

 
 

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Key contacts

Faisal Choudhry

Faisal Choudhry

Director, Scottish Research
Residential Research

Savills Glasgow

+44 (0) 141 222 5880

 

Emily Dorrian

Emily Dorrian

Associate
Residential Research

Savills Glasgow

+44 (0)141 222 4132

 

Tracy Griffiths

Tracy Griffiths

Analyst
Scotland Residential

Savills Glasgow

+44 (0)141 222 4141