According to property consultants CKD Galbraith, there are prospective buyers emerging from London, Hong Kong, Singapore and the Middle East as well as Scotland, encouraged by improvements in the general residential property market.
Although a slowdown is expected which will inevitably become more noticeable around the time of the referendum in September, the firm reports that to date there has been no compelling evidence that the referendum has had a negative effect on estate sales.
However, impending legislation on land reform, which will be introduced post referendum and before the next elections in 2016, will have an impact on estate owners and their land based business activities, it points out.
‘Highland estates come to the market on average only once every 16 years and around 20 are sold annually. The number of estates sold in both 2012 and 2013 was 16, with a total sale value of some £60 million and £70 million in each respective year,’ said John Bound, partner and head of CKD Galbraith’s estates division in the Highlands.
‘The question on most people’s minds this year is what possible affects the impending referendum will have on the demand and supply of Scottish estates. To date, there is no compelling evidence that the referendum has had a significant negative effect on the estate market,’ he explained.
‘Indeed, there is some evidence, in the form of recent estate sales in the Borders and Argyll that some prudent purchasers are keen to buy now and are taking the view that prices may well rise, post referendum. However, as is generally the case in general election years, we anticipate that the uncertainty of the referendum may slow the estate market down in 2014,’ he added.
But he also said that in keeping with the recovery in the general residential property market, the firm expects the estate market to show continued activity some time after the referendum. ‘Given the unique nature of estate properties and the relatively few estates that are marketed every year, the market will, we believe, pick up again and continue growing once the dust has settled,’ said Bound.
