The latest analysis from Knight Frank has shown that prime Scottish country house prices fell by 0.3% in Q3 2015. According to the report, web visits from overseas increased by 34% in the two months following the EU referendum compared with the pre-referendum period.
Web visits from outside the UK jumped 34% in the two months following the vote, compared with the pre-referendum period and were 13% higher than the same two-months in 2015.
There were 142 £1 million-plus sales completed across Scotland over the 12 months to June.
Oliver Knight, Knight Frank Research, comments: “As yet the UK’s vote to leave the European Union in June appears to have had little effect on demand with key activity indicators remaining strong. The number of new applicants registering their interest in purchasing a property with Knight Frank was slightly lower over the three months to September, compared with the same period last year. The number of property viewings was up by more than 23% over the same time.”
Ran Morgan, Head of Knight Frank Scotland, said: “In our experience LBTT is still acting as the biggest brake on the market and this is motivating buyers to negotiate harder – something which is reflected in the slight drop in average values. However, if the property is of the right quality and is accurately priced then there is competition for it.
Following the EU referendum we have noticed a pick-up in interest in Scottish property from overseas as potential buyers look to take advantage of sterling’s recent devaluation.”
Stock levels drop but demand picks-up
A growing imbalance between supply and demand is a key driver of pricing in the Edinburgh market.
The latest data has shown that quarterly price growth in Edinburgh was unchanged between July and September, rising by 1.6% against the same period last year. The number of new buyers registering their interest in buying a property increased 13% in Q3 compared to last year Prices in the New Town and West End have risen by 3% over the last year
Oliver Knight, Knight Frank Research, comments: “The number of viewings was more than 4% higher over the same timeframe which suggests that the underlying demand for homes in the city remains strong.
But despite a pick-up in buyer activity, there remains some hesitation on the part of vendors. Stock levels were 6% lower in September than at the same point last year and 24% below where they were in September 2014.”
Edward Douglas-Home, Head of Edinburgh City Sales at Knight Frank, comments: “The pick-up in activity we have seen in recent months has not been matched by an increase in the number of new homes coming to the market, resulting in a growing imbalance between supply and demand, especially in the city centre.
While buyers remain price sensitive as a result of higher purchase taxes, the scarcity of properties for sale has, in some cases, resulted in competition for the best homes in central neighbourhoods – something we expect to continue as we head into the traditionally busier autumn market.”
