Scotland's Prime Property Market

Scotland's Prime Residential Market
 
Outlook

15 September 2016, by Faisal Choudhry

Scotland's prime residential property market will continue to improve despite political challenges

 

 Low rates of mortgages and taxation will underpin the market below £400,000. However, this market is heavily reliant on lending, and a tightening in criteria could impact on the number of sales and prices in the long term. An expected adjustment in values in the Aberdeen area could improve transactions and reduce the record amount of available stock, which is hampering sales across the market.

 The number of prime transactions and values up to £600,000 will continue to improve in Scotland’s city and town locations. However, the market up to £1 million, especially in country and rural locations, will not recover to levels witnessed up until 2014, unless the punitive 10% level of LBTT between £325,000 and £750,000 is reduced.

 Activity above £1 million will remain stable as this market is better able to absorb higher rates of LBTT. Edinburgh will continue to dominate this market due to the fact that in times of uncertainty, high net worth investors are drawn to prime central hotspots, which are considered safe investments.

 We are encouraged by the high levels of activity in terms of new buyer registrations and viewings since the EU Referendum. With a backdrop of improving economic indicators, the fundamentals for a healthy residential property market are in place and there will continue to be a stable market due to the essential requirements to move house, together with the needs of upsizers and downsizers.

 

 
Briarlands, Glasgow

▲ Briarlands (Offers Over £1,250,000) in the south side of Glasgow. The Scottish residential market above £1 million is expected to remain stable as it is better able to absorb higher rates of LBTT.

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