Scotland's Prime Property Market

Scotland's Prime Residential Market
 
Million pound market suffers due to LBTT

8 September 2017, by Faisal Choudhry

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

 

Last year, Scotland’s million pound market seemed to be absorbing the punitive rates of LBTT better than the immediate price bands below it. However, the higher taxation malaise is now spreading into this market. The annual number of transactions remained almost unchanged at 144 during the 12 months ending June 2017 compared to 145 during the 12 months ending June 2016. However, this masks the slower market during this calendar year, with 56 transactions during the first half of 2017 compared to 79 during the first half of 2016.

While there has been a marginal dip in the number of transactions compared to the five year average, the spread of these has altered. Edinburgh remains the hub of the million pound market, although the Capital has seen a modest drop in transactions at this level, with 33 recorded in the first six months of 2017 compared to 45 last year. In addition, at the height of Aberdeen’s oil dependent residential market, the area produced the second highest level of transactions after Edinburgh. However, latest figures reveal there were only five million pound transactions during the year ending June 2017, including just one in 2017, in a period characterised by uncertainty in the energy sector.

Activity spreading out from main hubs

Meanwhile, there has been a spreading out of transactions to other locations. Greater Glasgow’s million pound market has had a stronger 12 months, with 28 annual transactions taking place. The West End, Park, Pollokshields and Bearsden were the stand out locations. Other headliners include the buoyant East Lothian market, which saw eight annual transactions and also Perthshire where the Tower of Lethendy, on the market for £4.6 million, achieved the highest residential transactions price in Scotland since 2007. In addition, Brackenbrae House in Broughty Ferry became Dundee’s first ever million pound transaction earlier this year.

 
In January this year, Brackenbrae House in Broughty Ferry became Dundee's first ever million pound residential sale

▲ In January this year, Brackenbrae House in Broughty Ferry became Dundee's first ever million pound residential sale

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