Scottish prices steady in face of referendum

The volume of prime property for sale in Scotland has increased steadily through 2014 but, buyers are becoming more cautious in the run up to the referendum, says the newest research from Knight Frank.

Country house prices north of the border were unchanged in the second quarter of the year, following three consecutive quarters of price growth for prime Scottish house values. On an annual basis, though, prime property values in Scotland have increased by 2.8%. Price-wise, The Scottish Borders and the Central region are leading the way with growth of 5.8% and 3.2% respectively.

Stock levels have increased over the course of the past three months, and as a result, viewings increased in April and June. However, there are signs that buyers are becoming more reluctant to enter the market with the referendum just around the corner: a number of individuals looking to purchase a prime country home in Scotland was 25% lower compared to the same time last year, reflecting the uncertainty caused by the referendum.

Ran Morgan, head of Knight Frank's Scottish residential department, said: ‘There is some hesitancy on the part of buyers to get involved with the market until the question over Scottish independence has been answered. This is especially true for buyers from outside of Scotland, who are waiting until after the result of the referendum is announced in September.

'However, an increase in the number of homes available for sale is good news for those who are looking to move as it affords them greater choice in their home search.

‘And while activity and interest from buyers has been greatest for homes worth up to £1m, we have noticed a rise in interest for properties priced above this, with the sale of the Auch & Invermearan Estate in Argyllshire and Perthshire for over £10m a particular highlight.'

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