Spotlight: Scotland's

Residential Property Market

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

8 September 2017, words by Faisal Choudhry

Scotland is enjoying its strongest market conditions since 2008, despite higher rates of taxation

Summary

Whilst the UK-wide residential market is feeling the impact of the EU referendum and this year’s General Election, Scotland, despite higher rates of taxation, is enjoying its strongest conditions since 2008. Should the Scottish Government reconsider LBTT rates then the property market has the potential to rival the performance of other markets around the UK

 

Prime market activity across Greater Glasgow goes from strength to strength, with the West End and new build markets leading the way

A lack of mainstream supply has led to a drop in activity in Edinburgh. The prime market continues to suffer from the impact of LBTT and fewer properties are being launched this year

The Aberdeen area residential market is looking less gloomy, with values stabilising and transactions recovering slightly in recent months. However, the level of available second hand mainstream stock remains high

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 demand. However, higher taxation continues to impact the top end of the market

The market above £750,000 is struggling to adjust to LBTT, which is heavily reliant on the top end of the market and sales in Edinburgh. Future Government targets will not be achieved unless there is a significant change in rates

Articles from Spotlight: Scotland's Residential Property Market

Strongest market since 2008

08 September 2017

Strongest market since 2008

Scotland’s improved market performance is due in part to the resilience of Scottish buyers who have become used to political change…

Greater Glasgow reaches new heights

Prime market activity goes from strength to strength, with the West End and new build markets leading the way

LBTT puts Edinburgh under pressure

A lack of mainstream supply has led to a drop in activity. The prime market continues to suffer from the impact of LBTT and fewer properties are being launched this year

Aberdeen area shows signs of recovery

The Aberdeen area residential market is looking less gloomy, with values stabilising and transactions recovering slightly in recent months...

Value for money boosts regional locations

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

Million pound market suffers due to LBTT

The punitive rates of LBTT are now impacting the million pound market. However, this market is no longer heavily concentrated in Edinburgh and Aberdeen, with more activity in the west and other regional locations

LBTT impact

08 September 2017

LBTT impact

The market above £750,000 is struggling to adjust to LBTT, which is heavily reliant on the top end of the market and sales in Edinburgh. Future Government targets will not be achieved unless there is a significant change in rates

New build outperforms

08 September 2017

New build outperforms

Scotland’s new build sector has outperformed the wider market, with support from Government incentives. Meanwhile, mixed-use schemes in central Glasgow will deliver future homes and workspace, changing how we live, work and socialise

 
 

Subscribe to Savills research

 

Would you like to be notified via email about new research?