Scottish country house values slid back in third quarter, according to Knight Frank’s Scottish Country House Index
Date : 14 October 2010
Quarter 3 results from Knight Frank’s Scottish Country House Index
Key headlines:
· The average price of prime Scottish country houses fell by 1.7% in Q3 2010 after a slight increase in Q2
· Prices have fallen just 0.9% during the past 12 months
· The north of Scotland proved most resilient, with prices falling by just 0.1%
· The biggest falls were seen in Argyll (-2.8%) and the Scottish Borders (-2.5%)
· Average prices are now 20.5% lower than they were during the market’s peak in late 2007
· Sensible pricing attracts more viewings, which can lead to competitive bidding
· Almost 70% of Knight Frank Scotland’s country house sales this year achieved more than the asking price.
Although the average price of country houses in Scotland fell by 1.7% between July and September, values did rise slightly in the first half of the year and overall have fallen by just 0.9% in the past 12 months.
Buyers remain cautious and sensible pricing is the best way to encourage as many viewings and offers as possible. By tempting more potential buyers, asking prices are more likely to be met or even exceeded. Indeed, 67% of our country house sales so far this year achieved more than the asking price.
People choose to move to Scotland’s beautiful countryside because it affords them a lifestyle that’s hard to beat elsewhere - its magnificent properties, scenic views, fantastic schools and employment opportunities in Edinburgh make it a perennial favourite.
To that end, we still receive significant numbers of enquiries from overseas buyers looking for the kind of “trophy” properties that only Scotland can deliver. And properties within commuting distance of Edinburgh - the Home Counties of Scotland - are always sought after.
Where vendors have been reluctant to reduce asking prices in line with current market sentiment, properties are taking longer to sell.
The imminent VAT increase (in January) and stamp duty hike for homes costing £1m and above to 5% (from April 2011) will make buying more expensive for many prospective purchasers next year, making now an opportune time to buy.
Change in value of prime Scottish country houses by type:
|
|
Cottages
|
Farmhouse
|
Small country house
|
Large country house
|
|
3-month change
|
-2.2%
|
-1.4%
|
-1.4%
|
-2.1%
|
|
6-month change
|
0.2%
|
-0.5%
|
-1.4%
|
-0.7%
|
|
Annual change
|
0.2%
|
-0.5%
|
-1.4%
|
-0.7%
|
Change in value of prime Scottish country houses by region:
|
|
Argyll
|
Central
|
Lothians
|
North
|
Northeast
|
Borders
|
Southwest
|
|
3-month change
|
-2.8%
|
-1.1%
|
-0.8%
|
-0.1%
|
-1.0%
|
-2.5%
|
-3.2%
|
|
6-month change
|
-0.9%
|
-2.9%
|
0.5%
|
1.0%
|
-1.2%
|
-1.3%
|
-2.1%
|
|
Annual change
|
-0.9%
|
-2.9%
|
0.5%
|
1.0%
|
-1.2%
|
-1.3%
|
-2.1%
|
For further information, please contact:
+44 (0)131 222 9601, +44 (0)7979 530434
+44 (0) 207 861 1033, +44 (0) 7796 996 154
Ends
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US$886 billion (£594 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.
About the Knight Frank Prime Scottish Country House Index:
The Knight Frank Prime Scottish Country House Index is a valuation-based index, compiled quarterly from valuations prepared by professional staff in Knight Frank’s Edinburgh and Lauder offices. The index is based on the valuation of a comprehensive basket of properties from across Scotland split by property type - cottages, farmhouses, small country houses and large country houses.