Edinburgh bucking the UK trend

In their June 2007 review of the Edinburgh market, leading estate agents Knight Frank say that, despite a shortage of high-quality housing available, rises in interest rates and a Scottish election, Edinburgh’s property market is buoyant and is one of the main reasons that Scotland is bucking the national trend.

Matthew Munro, partner in charge of Knight Frank’s Edinburgh residential properties, reports that demand for luxury family homes in the city far outstrips supply, and claims that this is one of the reasons why property values have trebled in the last ten years. He says:

“There is a tangible shortage of high-quality residential property available within Edinburgh and people will pay a premium to acquire the house they want. This drives house values up. We receive a phenomenal level of enquiries from all over the world, from buyers who view Edinburgh as a desirable place to live. 26 per cent of our purchasers are from London, with 17 per cent from overseas. Only 39 per cent are from Edinburgh. Although we have sold more than £20m worth of property over the last 4 months, this could have been higher if there were more top-end properties available. A large number of our sales are entirely private, as many sellers and buyers in the luxury sector prefer anonymity.”

Knight Frank believe that providing the supply of quality property is available, the market will continue to grow throughout the rest of 2007, with houses going for an average of 20-25% more than the asking price.

The Knight Frank reports also shows that 46% of their transactions are families upgrading, while 22% are downgrading. Other factors include divorce and relocation. 10 per cent of purchases are second homes, 10 per cent are bought as investments, and 70% of purchasers are in their forties and fifties, with only 18% under the age of 40.