Charlie Kennard MRICS’ Post

The prime residential market in Scotland had a strong start in 2024, thanks to more stable mortgage rates and a slowdown in inflation. According to TwentyCi, there was a 16% increase in second-hand sales over £500,000 in the first quarter of 2024 compared to the same period in 2023. The market above £1 million saw an even bigger increase of 24%. On the other hand, the market below £500,000, which relies more on mortgage lending, saw a 9% increase, reflecting the better borrowing rates since last summer. Interestingly, the prime market in the UK outperformed Scotland, with a 19% rise in sales above £500,000 in Q1 2024, led by London and its surrounding areas. Despite this, Scotland still saw a record number of sales above £500,000 in the first quarter of 2024, surpassing the levels of the previous two years. This is impressive considering there hasn't been much change in property values during this time. Find out more:

In the second quarter of 2024, the prime residential market in Scotland showed resilience with increased transactional activity, even though values have remained relatively stable since 2022. According to data from TwentyCi, the number of second-hand net agreed sales above £500,000 in Scotland during April to June was 18% higher compared to the same period in 2023, similar to trends in prime markets in other regions. However, there has been a noticeable shift in market conditions in Scotland since the beginning of June, with a decrease in properties being listed and a drop in agreed sales across the wider market. With slight increases in mortgage rates in recent months, the market below £500,000, which relies more on lending, saw a 10% decrease in agreed sales from May to June this year. Scotland's prime market is more driven by equity, but leading up to the general election, there was some caution among buyers who chose to wait and see how things would unfold before making firm decisions. This resulted in little change in agreed sales above £500,000 between May and June this year, compared to a 17% increase during the same period last year. See more:

In the second quarter of 2024, Scotland's prime residential market showed strength with increased transactional activity, despite values remaining stable since 2022. According to data from TwentyCi, the number of second-hand net agreed sales above £500,000 in Scotland from April to June saw an 18% rise compared to the same period in 2023, mirroring trends in prime markets in other regions. However, recent data indicates a shift in market conditions in Scotland since the start of June, with fewer properties being listed and a decrease in agreed sales overall. The slight increase in mortgage rates in recent months has had an impact on the sub-£500,000 market segment, leading to a 10% decrease in agreed sales between May and June of this year. While Scotland's prime market is more equity-driven, the uncertainty surrounding the general election earlier in the year prompted some buyers to hold off on making decisions. This resulted in a minimal change in the number of agreed sales above £500,000 between May and June, in comparison to a 17% increase during the same period last year. Read more:

In Q2 2024, Scotland's high-end real estate market showed resilience with an increase in transactions despite stable values since 2022. Data from TwentyCi revealed a rise in second-hand property sales over £500,000, mirroring trends in prime markets in other regions. However, recent data indicates a shift in market conditions in Scotland, with fewer properties coming onto the market and a decline in sales since June. The lower end of the market, especially vulnerable to mortgage rates, experienced a 10% drop in sales between May and June. Scotland's prime market, driven by equity, saw cautious behavior leading up to the general election, resulting in steady sales above £500,000. Buyers took a wait-and-see approach before committing to transactions. See more:

Mortgage lenders have shown greater caution in light of the economic uncertainty and an increase in swap rates. Many have increased their rates following substantial reductions at the start of the year when they anticipated earlier base rate cuts. Further delays to these cuts will keep rates higher for longer, tempering the growth in demand and reducing upward pressure on prices. Buyers have taken advantage of previous falls in mortgage rates, increasing market activity. Mortgage approvals in January ticked up to 55,200, according to the Bank of England, the highest number in 15 months. This supported an increase to sales agreed which were 27% higher in February compared to the same month last year and even 13% above the 2017-19 average, according to TwentyCI.

Mortgage lenders have shown greater caution in light of the economic uncertainty and an increase in swap rates. Many have increased their rates following substantial reductions at the start of the year when they anticipated earlier base rate cuts. Further delays to these cuts will keep rates higher for longer, tempering the growth in demand and reducing upward pressure on prices. Buyers have taken advantage of previous falls in mortgage rates, increasing market activity. Mortgage approvals in January ticked up to 55,200, according to the Bank of England, the highest number in 15 months. This supported an increase to sales agreed which were 27% higher in February compared to the same month last year and even 13% above the 2017-19 average, according to TwentyCI.

Nationwide reported a 0.4% increase in house prices for May, bringing annual growth to 1.3%. Despite high borrowing costs, the market has shown resilience with this return to monthly growth after two months of declines. The current stability in mortgage interest rates, although slightly impacted by swap rate increases, has provided some comfort to buyers. However, further cuts in mortgage rates will be needed to stimulate more demand in the market. See more:

We hosted a webinar on 11th November to discuss the 2025 housing market forecast for the South Coast. Our experts covered key topics like mortgage trends and policy impacts. Watch the full discussion here:

In the second quarter of 2024, the prime residential market in Scotland showed resilience with increased transactional activity, even though values have remained relatively stable since 2022. According to data from TwentyCi, the number of second-hand net agreed sales above £500,000 in Scotland during April to June was 18% higher compared to the same period in 2023, similar to trends in prime markets in other regions. However, there has been a noticeable shift in market conditions in Scotland since the beginning of June, with a decrease in properties being listed and a drop in agreed sales across the wider market. With slight increases in mortgage rates in recent months, the market below £500,000, which relies more on lending, saw a 10% decrease in agreed sales from May to June this year. Scotland's prime market is more driven by equity, but leading up to the general election, there was some caution among buyers who chose to wait and see how things would unfold before making firm decisions. This resulted in little change in agreed sales above £500,000 between May and June this year, compared to a 17% increase during the same period last year. See more:

According to Nationwide, house prices increased by 0.4% in May, bringing the annual growth to 1.3%. After two months of price declines, this rise in monthly growth indicates that the market has been able to withstand the high borrowing costs. However, price growth is expected to remain limited until there are further reductions in mortgage rates. Despite a slight increase in swap rates, mortgage interest rates have remained relatively steady in recent weeks. While this stability has provided some comfort to buyers, lower rates will be essential to stimulate more demand in the market. See more: