This Spotlight looks at how Scotland's prime residential property market is currently performing and our forecasts for the future. Download here.

London buyers

Buyers are recognising that the gap between house prices in London and those in Scotland’s prime locations has never been greater and as a result there has been a significant increase in the number of people from the south looking to buy in Scotland.

Buyers registering with Savills to buy a Scottish property by the end of August 2013 increased by over 100 percent compared to the whole of 2012. A prime residential address, access to good schools, larger accommodation and value for money have all been cited as key drivers for the move north.

Looking at a sample of property on the market, buyers in the London suburb of Fulham would have to pay three times more per square foot than they would in a comparable Edinburgh suburb (see Table 3).

We have noticed a trend in buyers selling London properties and not only buying a larger home in Scotland, but using their equity to reduce their mortgages. In a number of instances the breadwinner has retained their London employment and is commuting to the family home in Edinburgh at weekends.

Million pound market

The top end of the market in Scotland, suppressed by stamp duty thresholds and a lack of homegrown buyers, remains difficult with increasing reliance on purchasers from outside Scotland.

There were 46 residential sales recorded at £1 million and above during the first six months of 2013 in Scotland. This is only one less than for the same six-month period last year but 26% less than the average from 2004 to 2013 over the same six-month period (see Graph 2).

Edinburgh, the traditional hub of the prime market with a 54% share of this market, saw a slight rise at the top end, from 22 sales during the first six months of 2012 to 25 during the first six months of this year.

The West End of Glasgow saw its first residential sale above £1 million in two years. Across Scotland, there were only two transactions at £2 million and above during the first six months of 2013 compared to seven in 2012 over the same period.

Taken from
Spotlight: Scotland's Prime Residential Property Marktet