Top end recovers

There was a phenomenal recovery in Scotland’s million pound market during the second half of 2017, following a slow start to the year, mainly due to the impact of LBTT. The total for 2017 was 172 compared to 167 in 2016. Whilst million activity has risen, only six transactions took place above £2 million last year, which is the lowest annual number since 2004. There were more local buyers last year, reflecting increased prosperity within Scotland.

^{Source: Savills Research}

High concentration in Edinburgh

The million pound market is becoming increasingly concentrated in Edinburgh, reaching 62% of transactions in 2017 compared to a 10-year average of 49%. There were 108 transactions in Edinburgh during 2017, which is the highest annual figure since 2007.

Some of the highest concentration of million pound activity takes place in the EH3 6 postcode of the New Town. However, a drop in supply resulted in just 10 transactions last year compared to 19 in 2016. An increase in supply on the other hand resulted in more activity in suburban locations.

Outside Edinburgh, there were 10 transactions in East Lothian, mainly taking place in Inveresk, North Berwick and Archerfield. Midlothian and West Lothian saw their first million pound transactions since 2014 and 2015 respectively.

Slight decrease in Greater Glasgow

Over in the west, million pound transactions across Greater Glasgow dropped slightly from 27 in 2016 to 24 in 2017. But the 2016 figure was boosted by new build activity in South Lanarkshire. The market recovered in Glasgow City and East Dunbartonshire, with nine and seven transactions respectively compared to six and five in 2016.

Activity returns to the Highlands

Outside the Central Belt hubs, million pound activity remained relatively unchanged in Fife and the Scottish Borders. Meanwhile, Highland saw its first million pound activity in three years. However, Perth & Kinross and Aberdeen City saw a sharp reduction. There were only four in Aberdeen, the lowest since 2006 and only two in Perth & Kinross, compared to eight in 2016.

Looking ahead, Savills has experienced an extraordinary uplift in transactions going under offer in past three months. In particular we are receiving offers in Perthshire where the market is beginning to move again.

^{Glossary Overall market refers to residential transactions across all price bands, obtained from the Registers of Scotland. Prime market refers to transactions at £400,000 and above. Average house prices were obtained from the Savills Repeat Sales index (six-month smoothed).}