FROM STRENGTH TO STRENGTH
RETTIE & CO. NOW SELLS AND MANAGES AROUND 1,500 RESIDENTIAL PROPERTIES EACH YEAR, NOT JUST IN EDINBURGH BUT ACROSS RURAL AND URBAN SCOTLAND. SIMON RETTIE FRICS REVIEWS A BUOYANT AND FAST-CHANGING MARKET. In 2005 the market moved forward strongly in Q1 and Q2 before cooling significantly in Q3-Q4. Then, as the year turned, the market surged rapidly forward once again, taking many by surprise and confounding the predictions of professionals and the media in general.
Demand for quality homes is now very strong across the entire price range, but particularly at the top end of the market. In this buoyant environment Rettie & Co. is experiencing high levels of demand and growing rapidly across all areas of the business.
Opportunity and Advantage
Rettie & Co. now lists Scotland'smost expensive properties. In the first three months of this year 10 transactions for homes priced in excess of £1m have been completed, and sales at the £2M - £3M level are no longer uncommon.
We are experiencing a higher than ever level of demand for our services, not just from Edinburgh-based clients and contacts but from across Scotland and around the world. The market is full of opportunity at every price pointand we are active in it across the board, using our particular blend of skills, experience and total professionalism to create advantage and add value for sellers, investors and landlords alike.
Letting
Rettie & Co.'s established letting business has continued to grow rapidly. New management systems and a strengthened senior team have helped us extend our offer to landlords and investors; we are letting increasing numbers of family homes, corporate houses and professionals' flats, and we are set to capture an increasing share of this important market.
Leithcontinues to offer good value and its popularity with both landlords and tenants remains strong. Demand for traditional, good quality accommodation in the city centre is also healthy, and in the case of family homes it exceeds supply by some distance.
Edinburgh's success in the financial services sector continues to stimulate a requirement for good quality family accommodation from finance professionals arriving in the city on two-or three-year employment contracts. Supply of this type of home has been limited and we believe that take-up in this niche sector will continue to grow.
"The steady rise in prices across all sectors has taken the average price of a family home sold by rettie & co. in edinburgh to over £700,000."
Period Homes
Demand in Edinburgh remains very strong. The start of 2006 saw an immediate leap forward, with rising prices across all sectors.
Rettie & Co. is the acknowledged specialist at the upper end of the period homes market in Scotland. The steady rise in prices across all sectors has taken the average price of a good quality family home sold by Rettie & Co. in Edinburgh to over £700,000.
Outside Edinburgh, markets in the Scottish Borders, Fife, Perthshire and Stirlingshire have all seen significant growth thanks to the excellent value offered by many properties in these areas relative to the established hot spots. East Lothian remains one of our specialist areas, with no sign of any slowdown. Houses in Dirleton, Gullane and North Berwick, for example, are regularly selling for substantially over £1M and these prices are set to grow further.
In this mature market, Rettie & Co. is leading a wave of change in the way period properties are presented for sale. We are selling a growing number of houses on a private basis; newspaper advertising is still an important medium but in more and more cases the Internet and direct database contact is where transactions are starting and ending.
We expect this trend to continue. Online marketing allows large amounts of relevant information to be passed, quickly and cost effectively, to potential purchasers across the world, and is justifiably popular with both buyers and sellers. The efficiency and scope of our online resources make our marketing service the equal of that of any international agency, if not better. Arguably, its exclusive focus on Scotland makes it a more immediate option.
Rural Properties
The arrival of Chris Hall to head up our Rural team is good news for Rettie & Co.'s growing base of rural and agricultural clients. Chris's expertise enables us to offer a full range of services to owners of land and country properties, including professional work relating to farms, estates and other land-related matters.
The economic changes currently affecting agricultural land present some particular challenges, and with more than 15 years' experience in this highly specialised field Chris is exceptionally well placed to help clients meet them. His input is already making a significant difference for a number of clients who appreciate the added value approach we bring to their business affairs.
The Rural team has also been successful in the large country house market, notably in Dumfries-shire, Perthshire, Fife and Stirlingshire where we have sold a number of attractive traditional properties. A substantial Argyll estate has recently been acquired on behalf of clients and two further Argyll estates are coming to the market this year.
In the Borders, our Melrose office is now firmly established, having celebrated its first full year of operations. Our Melrose team offers a depth of service not currently available elsewhere in the Scottish Borders, and has been successful across the market, achieving excellent prices for smaller village houses as well as larger country homes. Our ability to link our marketing efforts in Melrose to those of our Edinburgh-based teams, and to the wider UK market through our London office, is a key benefit for Borders-based clients.
New Build Homes
The appointment of Paul Whiteley as Sales Director of the New Homes team has brought further strength and depth to this department and a sharper focus on the changing needs of our new homes client base. We are selling houses and flats throughout central Scotland, from Perth to Glasgow and from Fife to the Scottish Borders, not forgetting Edinburgh and the Lothians. The total value of new build sales by Rettie & Co. is now in excess of £100M per annum.
"Leith has certainly slowed down as a result of an over-supply however interest in city centre property has remained buoyant."
In new homes, Edinburgh is a tale of two cities: Leith and the city centre itself. Leith has certainly slowed down as a result of an over-supply. A thorough strategic re-think for the development of North Edinburgh is required, linking transport infrastructure and demand portfolio to a sustainablemasterplan. Interest in city centre property remains very bouyant. Quartermile's exciting development on the site of the former Royal Infirmary of Edinburgh looks set to be well received. At other key locations, including Belford Road and St Vincent Place, selling rates continue to rise, thanks in part to the ability of developers to satisfy purchasers' rising expectations in relation to location, design and specification. All across the board, our New Homes team are finding that where the product is good there is no resistance to achieving full selling prices.
New family homes are still in short supply, but where they are available demand is very strong. This extends beyond Edinburgh into West Lothian and the Scottish Borders, all areas from which people can commute to work in both Edinburgh and Glasgow.
Mixed Commercial / Residential Development
Mixed use developments and the sale and purchase of development sites is an area in which Rettie & Co. has grown rapidly in the past year. Under the direction of Will Scarlett and Matthew Benson we are involved in some of the key commercial/residential developments in the City Centre and beyond, providing professional advice proactively to create added value. These include consultancy on Quartermile (up to 900 units), Caltongate (approx 200 units), Shrub Place (407 units) and Cambusmore, Aviemore (252 acres). Major site sales this year include the Edinburgh Fruit Market (8.75 acres) and major purchases include the Scottish Power site, Portobello (8.75 acres). In the financial year 2005/2006 we have sold or purchased approximately £80M worth of property and we intend to develop this area of our business further by adding to our team and developing our existing client base.
Skilled people who make things happen
Rettie & Co. now employs some 70 people, all trained and resourced to deliver expert advice and real benefits for clients. Four of our staff are currently completing RICS professional qualifications with the full support of the company. Other training and staff development programmes are in place, and this commitment to professional development is matched by major investment in technology to meet the changing demands of today's marketplace.
Rettie & Co. will continue to invest in people, strengthening our teams in ways that meet the needs of the current and future marketplace. Our expanding base of corporate, institutional and developer clients can take comfort from that commitment: Rettie & Co. is here for the long term, growing our business in all areas and providing the professional expertise and integrity which the property industry rightly demands.
SIMON RETTIE FRICS MANAGING DIRECTOR
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