Scotland's Prime Property Market

Scotland's Prime Residential Market
 
Value for money boosts regional locations

8 September 2017, by Faisal Choudhry

A further reduction in values has enabled a recovery in regional locations, with more buyers now coming from outside Scotland...

 

...Properties in established towns, with quick access to amenities and major cities, are in strong demand. However, higher taxation continues to impact the top end of the market.

Country houses in Scotland’s regional locations now offer extraordinary value for money compared to properties both elsewhere in the UK and in Edinburgh. Wealthy home-grown buyers and those from outside Scotland are beginning to take advantage of this affordability, particularly in areas within easy reach of the cities. This is evident in the number of number of Savills buyers originating from outside Scotland, which has increased by 82% during 2017, compared to last year.

As the political challenges in Scotland have eased, London buyers are also making a comeback. This against a backdrop of slowing house price growth in London, due to increased levels of Stamp Duty taxation, mortgage regulation and the Brexit vote, which have left the local market more exposed to uncertainty.

Value for money and quality of life are key drivers for such property buyers, including super-commuters who retain a London base close to where they work, but who commute north to the family home in Scotland at weekends. Such buyers benefit from combining a London salary with the significantly lower property values north of the border.

Scotland’s heartland

Across Scotland’s heartland of Stirling, Fife and Perthshire, the number of residential transactions increased annually by 5% during the year ending June 2017. The prime market above £400,000 outperformed, with an 11% annual rise.

Traditional hotspots

Prime values in hotspots such as Bridge of Allan, Dunblane, Dollar, St Andrews and Auchterarder increased during the second quarter of this year, compared to the same period last year. High quality properties in these locations continue to attract strong interest, due to their excellent schools, transport links and services. Prime values in village locations have picked up recently, however they remain stable in rural locations.

Rural locations

Market growth continues to spread into Highland, Ayrshire, Argyll & Bute, Borders and Dumfries & Galloway. Transactional growth in these areas outperformed Scotland last year. The relatively smaller market above £400,000 in these areas has improved, albeit limited to £700,000. The strongest growth was in Argyll & Bute, where prime transactions reached 49 during the year ending June 2017. The majority took place in Helensburgh, which recorded its highest total in this price band in six years.

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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