New research from Bank of Scotland has revealed a decline in prime property sales in Scotland over the first half of this year compared to the same period of the previous year. This decline is property sales have both affected commercial and private home selling. Different businesses in multiple industries including property development, removal firms, conveyancers, construction company’s and commercial fit out contractors have been affected by the decline in sales.
properties changing hands for over £1 million apparently fell by 35% over the six month period compared to the first half of 2016. In total 53 homes in this price bracket were sold in H1 2017, while 81 sales took place the previous year.
Scotland Sees Biggest Drop
The fall in sales experienced in Scotland is in distinct contrast to the rest of Great Britain, which has only seen an overall drop of 1%. Scotland’s drop of 35% is apparently the largest in the UK.
Figures from Lloyds Bank show that after Scotland, the other areas to see the biggest declines in million pound property sales were Wales (down by 31%) and the East Midlands (down by 27%). In London, sales of these properties fell by 7%, from 4,230 to 3,940.
Areas to see the biggest increases in prime property sales were North West and Yorkshire and The Humber, which rose by 55% and 45% respectively. Increases were also seen in the West Midlands (up 33%) and the South East (up 15%).
Looking at Scotland’s figures in closer detail, they show that the biggest fall in prime property sales took place in Edinburgh, with 19 (38%) fewer in H1 2017 compared to the same period last year. The capital accounts for over half of all million pound property sales taking place in Scotland.
Only five out of twelve Local Authority Districts in Scotland saw an increase in sales of million pound homes during H1 2017 compared to H1 2016. East Dunbartonshire recorded three sales during the period, compared to none a year earlier.
Other areas with modest increases include Perth and Kinross (2), Dundee City (1), Highlands (1) and Midlothian (1). East Lothian and Glasgow City are the two areas with the next highest number of million pound property sales from this market segment and saw no change from this time last year, both accounting for 8% of Scottish sales.
Different Factors at Play
“There are a number of factors at play here, with uncertainty in the market, interest rates and economic stability all having a bearing on people’s appetite to buy and sell high-end properties,” explained Donald Gateley, Head of Private Banking – Scotland. “With the Office for Budget Responsibility revising down forecasts for house prices and housing transactions we expect this slowing to continue in Scotland into the new year.”
“People may have been hesitant in Scotland at the top end of the market, but for those looking to purchase a million pound property there are steps that can be taken to avoid missing out on their dream home,” he said. “We would always urge anyone to seek advice about the appropriate options available to them.”
“It’s not just about buyers,” he added. “Owners of valuable properties who are planning to downsize or relocate may also wish to consider seeking advice around how they could pass this wealth onto family members.”
For expert legal advice on buying or selling property across Scotland, contact our specialist property and conveyancing lawyers today.
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