Housing sector

Analysis shows ‘remarkable’ period for Scotland’s primary housing sector

Faycal Choudhry

A new study has highlighted a ‘remarkable period of activity’ for Scotland’s primary housing sector.

Savills’ analysis found deals over £400,000 in Scotland hit an all-time high between September 2020 and August 2021, with 8,755 sales in progress, more than 75% higher than the pre-pandemic three-year average .

There was also a record 435 transactions over £1m in the 12 months to August 2021.

Additionally, annual growth in prime value was 8.1% in Scotland, the highest in 11 years.

According to data from Savills, the number of new properties over £500,000 coming on the market in October was 23% higher than the pre-pandemic average.

Faisal Choudhry, Head of Residential Research, Savills Scotland, said: “Looking ahead, with hybrid working models continuing and buyer demands changing, there is still a relatively strong core of unmet demand, with a net balance of +16% from respondents to our September survey of buyers and sellers indicating a greater commitment to move at some point in the next 24 months. The continuing imbalance between supply and demand underpins our forecast for 4.0% annual growth in mainstream and traditional Scottish stocks next year.

“But the rising cost of living and gradually rising interest rates should temper the outlook for price growth over the medium term, as the purchasing power of buyers gradually declines. An alignment of buyer and seller expectations will therefore be vital to maintain market momentum.