Prime Scottish property values pick up as demand escalates

Country house prices increased by 0.2% in Q3, while Edinburgh has seen a marked rise in £1m+ deals

Prime Scottish country house prices rose by 0.2% in Q3 2017, while annual price growth in Edinburgh stepped up to its highest level in three years in September 2017, according to Knight Frank’s analysis.

Prime Scottish country properties

Despite the nudging up of values in Q3, the average prime Scottish country house price remains 0.3% lower than a year ago.

Low stock levels remain the biggest challenge for agents and house-hunters – but it looks as though demand is really picking up.

Knight Frank data shows an 11% year-on-year increase in the volume of property viewings between January and September 2017, and chunky a 32% increase in deal volumes

H1 stats from Registers of Scotland, meanwhile, tell of an 18% increase in the number of residential transactions with a value higher than £425,000 compared with 2016. The bulk of that increase, however, has been below the £750k threshold – where higher rates of LBTT continue to crush demand.

Ran Morgan, Head of Scotland Residential: “The prime Scottish country house market currently represents excellent value when compared with elsewhere in the UK and this is something that ensures a good level of interest when new properties are launched.

“In addition to local buyers, demand from those originating from outside of Scotland, who are able to take advantage of the current weakness in sterling relative to a number of other currencies, is also strong.”

Edinburgh

Property values in the Scottish first city rose by 0.8% in Q3, and are up by 4.5% on the year (following Q2’s +2.1%).

Demand looks to be on the up, with Knight Frank reporting 21% and 16% increases in new buyer enquiries and property viewings respectively between January and August 2017. Transaction numbers are up a touch as a result; the firm did 3% more deals in eth first of this year compared to last.

Interestingly, around 17% of all transactions completed by Knight Frank in 2017 so far have been for properties above £1m… That’s up from 10% for the corresponding period last year and from just 6% in 2015.

But supply is still a big issue. There were 23% fewer homes listed for sale in Edinburgh in Q3 2017 compared with 2016…

Oliver Knight, Knight Frank Associate: “Pricing has been underpinned by a shortage of properties for sale relative to demand with 23% fewer homes listed for sale in Q3 2017 compared with the same period in 2016.”

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