£1 million market up by a fifth in Scotland - Rettie

Rettie said the introduction of Land & Buildings Transaction Tax (LBTT) clearly impacted on the prime residential market, with two-thirds of sales occurring in the first 4 months of the year in order to beat the higher tax levels imposed in April.

The firm said Edinburgh and Greater Glasgow accounted for nearly two-thirds of all £1m+ sales in Scotland in 2015, but sales of such properties in Aberdeen City & Shire fell by more than one-third over the year.

Over 80 per cent of £1m+ plus buyers already live in Scotland, with only 6 per cent of sales to overseas buyers.

The market has shown signs of recovery in early 2016, with Rettie & Co putting as many properties under offer in Edinburgh in January as it did over the period May-December 2015.

Rettie & Co. managing director, Simon Rettie, said: “The start of 2016 has been strong for our Sales Teams focusing on the prime market after, overall, an improved 2015. The impact of LBTT has undoubtedly affected the market, however, and this is still being felt. It is pleasing to note that Rettie & Co now account for 1 in 3 £1m plus sales across the whole country, with a strong presence right across the Central Belt and in rural areas”.

John Boyle, director of research, added: “The Scottish prime housing market is continuing to emerge from a very challenging few years post-recession. The market remains highly concentrated in a small number of locations and remains heavily dependent on indigenous buyers.”