Taylor Scott International News
Scotland has seen an increased demand for prime property in commuter locations with the housing market as a whole generally improving, according to new research. Scotland’s prime market is expected to grow by 18.8% over the next five years in terms of values, outperforming the overall residential market and in comparison to 22.2% across Great Britain, according to the latest report from real estate firm Savills. However, the prime market between £400,000 and £1 million continues to be constrained outside Edinburgh by the Land and Buildings Transaction Tax (LBTT) which was introduced a year ago, it points out. And after seven years of phenomenal growth, the Aberdeen market is experiencing price falls linked to falling oil prices. ‘While Scotland continues to attract overseas buyers, we are now seeing the return of wealthy home grown buyers, and there were some important trophy country house and estate sales during 2015,’ said Faisal Choudhry, director of Scottish research as Savills. ‘However, one of the most important factors in the Scottish market is the fact that the recovery, which began in prime city locations, is finally established in the suburbs and is beginning to reach more outlying locations,’ he explained. ‘Our latest data reveals today’s house buyers are falling back in love with the Scottish suburbs. This may partially be explained by a dwindling supply of the best homes available to buy in the most sought-after city centre locations,’ he added. While the prime areas like the New Town, Stockbridge and Morningside in Edinburgh and the West End in Glasgow, have been enjoying a strong market over the last five years, outlying areas had been slower to recover. Over the past year, however, there has been a jump in sales across adjacent locations, with the return of the ‘closing date’, and premium prices being paid. ‘We expect this trend to continue and to ripple further outwards to more attainable suburbs, like Liberton in Edinburgh and Netherlee in Glasgow,’ said Choudhry. Property prices are predicted to rise across the UK as a whole this year, but commuter locations are expected to see the greatest growth, with lower fuel costs playing a part. As a result, further outlying areas including Midlothian and locations such as Helensburgh and Kilmacolm are on the upturn. But Choudhry pointed out that there are market risks ahead of the European Union referendum in June and this may result from a drop in buyer confidence. ‘A vote to leave the EU has the potential to offset housing market demand, as an exit is negotiated. However, the impact on values might be mitigated due to low interest rates. Whatever the outcome, there will continue to be a market due to the essential requirements to move house, together with the needs of upsizers and downsizers,’ he said. Taylor Scott International
Taylor Scott International, Taylor Scott
