Realistic pricing boosts regions

Realistic pricing has been one of the main drivers behind the improved market conditions across Scotland’s regional locations. We saw modest prime value growth last year and prices are likely to remain stable throughout 2018.

However, areas attracting buyers from outside Scotland are achieving higher prices. The number of Savills buyers originating from outside Scotland increased by 60% in 2017, compared to 2016.

The market in the £300,000 to £500,000 price band has been less affected by LBTT and has been consistently strong. The £500,000 to £750,000 range has also performed well. The market above £750,000 was slow in the first half of 2017 but experienced a remarkable uplift in the winter months.

There has been a positive start to the market in 2018 with a significant increase in viewings and offers. As a result, the oversupply of houses on the market is beginning to reduce.

^{▲ Dounie, near Tayvallich in Argyll & Bute (Offers Over £375,000) attracted wide interest from across the UK and achieved a substantial premium recently at a closing date. The number of residential transactions across Argyll & Bute increased by 10% last year.}

Scotland’s heartland

Across Scotland’s heartland of Stirling, Fife and Perthshire, the number of residential transactions increased annually by 5% during 2017. Activity was boosted by an increase in new build transactions, especially in Fife.

The biggest growth in overall transactions was concentrated in the major populations areas of Perth City and Dunfermline. Activity across all price bands increased but mainly up to £1 million.

Traditional hotspots

Residential market performance in terms of transactions in hotspots, such as Bridge of Allan and Auchterarder, increased during 2017. However, the market in Dunblane, Dollar and St Andrews remained stable compared to 2016.

High quality properties in these locations continue to attract strong interest due to their excellent schools, transport links and services. Prime values in village locations have picked up recently, especially in Perthshire, however they remain stable in rural locations.

Rural locations

Annual transactional growth in the Scottish Borders (12%), Argyll & Bute (10%) and Dumfries & Galloway (10%) outperformed Scotland last year, supported by growing second hand markets.

Prime transactions in the Borders increased from 81 in 2016 to 128 in 2017. There were 27 prime transactions in Helensburgh, which was the highest annual figure since 2007 and represented a half of all such activity in Argyll & Bute during 2017.

Annual transactional growth in Ayrshire was 6% during 2017, led by East Ayrshire mainly due to an increase in new build activity. Prime transactions in Ayrshire increased from 82 in 2016 to 103 in 2017, but were mainly concentrated in the coastal hotspots of Ayr and Troon.