The Residential Property Market Boom

• Published date: 01 March 2021
• Subject Matter: Finance and Banking, Real Estate and Construction, Charges, Mortgages, Indemnities, Financial Services, Real Estate
• Law Firm: Anderson Strathern LLP
• Author: Jemma Richardson

The Scottish residential property market ended 2020 with a boom, with property values in Edinburgh seeing a sharp increase in the final 3 months of the year. With Land and Buildings Transaction Tax suspended on the first '250,000 of a property purchase price until 31 March 2021 and more high loan-to-value mortgage products available, this is showing no signs of slowing down.

Buyer demand has been strong with many families and individuals reconsidering their needs in light of the changes to how we now live and work. Perhaps unsurprisingly, there has been a renewed interest in country living in particular with commuter links suddenly becoming less important than a good Wi-Fi connection.

Clearly there will be challenges ahead brought about by the uncertain economic and political outlook. However, it is expected that the effects of lockdown will continue to drive strong activity in the residential sector. The home has become more important than ever.

Scotland's open space premium

The natural drive many of us are feeling for space has propelled many "lateral" property purchases and sales - with buyers purchasing a new property at a similar price point but in a location where prices are lower so allow them to have, for example, a home office or a garden.

Looking to 2021, it is expected that the resilient Scottish residential market will continue to weather the...