The value of prime Scottish country houses has risen for the first time since the end of 2007, according to Knight Frank’s Scottish Country House Index.
Date : 08 July 2010
Key Points
- The average price of prime Scottish country houses increased by almost 1% over the past three months
- This rise was the first quarterly increase since the last quarter of 2007
- Properties in the Lothian and Borders areas have shown the biggest increase in values while others remain static
- Average prices are still 18% below the market’s peak
- The number of houses for sale is increasing and vendors still need to be realistic about pricing
- Scotland remains attractive to wealthy buyers from overseas
John Coleman, head of country house sales, Knight Frank Scotland, commented:
“After nine quarters of falling or static prices it is encouraging that the value of prime Scottish country houses has at last started to pick up. An average rise of almost 1% in three months may seem modest, but it will give potential buyers and vendors the confidence that the market has now hit the bottom and is starting to slowly recover.
“We expect, however, that the recovery will be gradual and it will be at least three years before prices start to return to the levels that we saw before the banking crisis hit Scotland. It is also worth noting that values have not started to recover in every region of Scotland and continue to fall in some. Correct pricing is key and overpriced properties are attracting little interest.
The Lothian district around Edinburgh and the Borders have seen prices rise by 1.3% over the past three months, while those in Argyll are up by 2% on average.
“In terms of property type, the recovery has been strongest for properties at either end of the market. Cottages gained 2.4% in value in the second quarter of 2010, while large country houses rose by 1.4%.
“We are still receiving significant numbers of enquiries from overseas buyers looking for the kind of “trophy” properties that only Scotland can deliver. Even though Sterling has started to recover some of its value against the Dollar and Euro, some of the phenomenal properties we have on our books, such as the Yester Estate, in East Lothian, offer amazing value to the world’s wealthy elite.”
Change in value of prime Scottish country houses by type
|
|
Cottages
|
Farmhouse
|
Small country house
|
Large country house
|
|
3-month change
|
2.4%
|
0.9%
|
-0.1%
|
1.4%
|
|
6-month change
|
2.4%
|
0.9%
|
-0.1%
|
1.4%
|
|
Annual change
|
1.4%
|
0.7%
|
-0.1%
|
1.3%
|
Change in value of prime Scottish country houses by region
|
|
Argyll
|
Central
|
Lothians
|
North
|
Northeast
|
Borders
|
Southwest
|
|
3-month change
|
2%
|
-1.9%
|
1.3%
|
1.1%
|
-0.2%
|
1.3%
|
1.2%
|
|
6-month change
|
2%
|
-1.9%
|
1.3%
|
1.1%
|
-0.2%
|
1.3%
|
1.2%
|
|
Annual change
|
1.9%
|
-2%
|
1.2%
|
1%
|
-0.3%
|
0.8%
|
1.1%
|
For further information, please contact:
John Coleman, head of Scottish country house sales, Knight Frank,
Davina Bell, residential press manager, Knight Frank,
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 6,770 professionals handle in excess of US$700 billion (almost £355 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.