Sales of properties worth a million pounds or more in Scotland fell by 35% in the first half of 2017 compared to the same period the year before, new data shows.
The collapse in million pound property sales was not seen in the rest of Britain where the same sector of the housing market saw sales fall just 1%, according to research from the Bank of Scotland.
London also saw a decrease with million pound home sales falling by 7% from 4,230 to 3,940, the East Midlands down by 27% and Wales down by 31%, the research also shows.
A total of 53 homes were sold for at least a million pounds in Scotland in the first half of 2017, compared to 81 over the same period a year earlier and a 120 in the first six months of 2015.
Edinburgh recorded the biggest fall in million pound homes sales in Scotland, with 19 or 38% fewer in the first six months of 2017. The city accounts for over half of all million pound property sales in the country.
Only five out of 12 local authority districts in Scotland saw an increase in sales of million pound homes with three in East Dunbartonshire during the period, compared to none a year earlier.
Other areas with modest increases include Perth and Kinross with two completions, while Dundee, the Highlands and Midlothian all had one. East Lothian and Glasgow are the two areas with the next highest number of million pound property sales from this market segment and saw no change from this time last year, both accounting for 8% of Scottish sales.
‘Whilst sales of million pound properties across Britain have experienced a small dip, this has been more acute in Scotland due to fewer homes in this category,’ said Donald Gateley, head of private banking at the Bank of Scotland.
‘There are a number of factors at play here, with uncertainty in the market, interest rates and economic stability all having a bearing on people’s appetite to buy and sell high end properties. With the Office for Budget Responsibility revising down forecasts for house prices and housing transactions we expect this slowing to continue in Scotland into the New Year,’ he explained.
‘People may have been hesitant in Scotland at the top end of the market, but for those looking to purchase a million pound property there are steps that can be taken to avoid missing out on their dream home. We would always urge anyone to seek advice about the appropriate options available to them,’ he pointed out.
‘It’s not just about buyers. Owners of valuable properties who are planning to downsize or relocate may also wish to consider seeking advice around how they could pass this wealth onto family members,’ he added.
