Post election property data (Scotland + Country)

Prime Country House Price Growth Slows

Despite the certainty provided by a majority government, activity and prices in the prime country house market remained subdued during the second quarter.

Additional findings:

  • Average values rose by 0.9 percent between April and June
  • Annual price growth slowed to 2.3 percent
  • Higher stamp duty rates for prime properties has moderated activity
  • Prime urban property values are on average 2 percent above their 2007 peak

Rupert Sweeting, Head of Knight Frank Country, comments:

“Whilst the surprise election result brought certainty to the property market, the anticipated increase in activity has not fed through-yet. However this may be due to both vendors and purchasers having put their moving plans on hold prior to the election.”

“We anticipate the market being late and activity continuing through July and August. This has happened more and more in the last two years contrary to the usual downturn in activity in the traditional holiday months of August.”

Prime Scottish Property Market Pauses to Digest New LBTT Rates

Tax policy continued to play a defining role in Scotland’s prime property market during the second quarter. Oliver Knight examines the latest figures.

Additional findings:

  • Prime country house prices in Scotland rose by 0.2 percent in the second quarter
  • LBTT had the greatest bearing on market performance
  • Under the new LBTT rates, purchase costs for a £1.5 million property have risen by nearly 80 percent
  • Annual price growth was 1.4 percent

Oliver Knight, Knight Frank Residential Research, comments:

“The landslide SNP general election victory on May 7th has had a modest impact on the prime property market in the second quarter of 2015. Rather, it has been the recently introduced Land and Building Transaction Tax (LBTT) which had the greatest bearing on market performance.”

“As a result, buyers and vendors brought forward prime transactions prior to the introduction of LBTT in order to benefit from the lower stamp duty charges. There was a spike in activity during the first three months of 2015 with the number of sales completed by Knight Frank nearly 50 percent higher year-on-year”

“Since then, however, the prime market has been subdued, with the number of sales completed between April and June notably lower than the same period of 2014. There is likely to be an ongoing period of adjustment at the top-end of the market as individuals factor in the increased cost of moving.”