There was a jump in transactions above £1 million in Scotland, with 144 sales recorded during the year ending July 2014, compared to 121 during the previous 12-month period. The current level of 144 transactions is 8% below the 10-year annual average of 157 transactions (see Graph 1 below). Buyers originating from outside Scotland made up 30% of the million pound market, compared to 26% in the previous 12-month period.

During 2013, the majority of such buyers came from London. Since the start of 2014, only three buyers have originated from London, with overseas purchasers coming from other parts of Europe, the US, the Middle East, Hong Kong, Singapore and New Zealand, compensating for the lack of buyers from south of the border. We anticipate an increase in sales at the top end of the Scottish market from buyers, both from home and abroad, who had put their purchasing decisions on hold until after the vote.

Edinburgh, the traditional hub of the million pound market with a 44% share, saw a slight rise at the top end, representing 63 transactions during the year ending July 2014 compared to 57 during the previous 12-month period. This was followed by the Aberdeen area which saw 30 sales above £1 million during the year ending July 2014. This included 13 new build sales, with six taking place at a single development 
in the West End of the city.

While sales at £1 million and above in the Greater Glasgow area increased to 17 during the year ending July 2014, compared to 11 during the previous 12-month period, there has only been one transaction this year in Lanarkshire and one in the city area of Glasgow.

There were 11 residential sales at £1 million and above across Tayside during the year ending July 2014 compared to eight during the previous 12-month period.

Scotland has traditionally had a small market at £2 million and above, with just 12 transactions at this level during the year ending July 2014, with half of the sales taking place in Aberdeen and Edinburgh.

To put this in context, there were 28 sales in the Northern regions of England and 2,456 residential sales in London at £2 million and above during the year ending June 2014. Activity in Scotland at this level has dropped off in recent months as uncertainty over the Referendum has deterred buyers from outside Scotland making such big investments in the country. We now expect this sector of the market to recover over the next six months.

CLICK Graph 1 BELOW TO ENLARGE

Taken from
Spotlight: Scotland has voted 'No'