In 2021, the Scottish market for homes worth over £1m witnessed an unprecedented level of activity. The number of £1m+ house sales jumped to over 400, up from a previous high of 289 seen in the 2007 market boom. This level of activity was almost 50% higher than the already buoyant 2020 market and saw the total value of £1m+ house sales in Scotland jump from just over £400m in 2020 to £583m in 2021.
The surge in £1m plus house sales over 2021 has been a notable feature of the post-lockdown housing market. Such sales are now well ahead of their previous peaks and nearly 50% ahead of 2020 levels.
One response to the post-lockdown world has been people’s willingness to consider more rural areas and accessible towns, and the sharp rise in demand for this type of living has caused prices to surge in some of these areas, pushing the most desirable properties over the £1m mark. This is clearly seen in parts of East Lothian as well as north of Stirling and east of Loch Lomond.
However, Edinburgh remains at the heart of the Scottish £1m market, accounting for two-thirds of such sales. Nevertheless, here too there has been a greater diversity of such sales, with more pushing out to locations such as Colinton and Trinity, outside previous core prime areas.
2021 saw a surge in £1m+ house sales, with 419 homes sales registered.
The average £1m+ house sale price in Scotland in 2021.
The total value of £1m+ house sales in Scotland jumped to £583m.
The Covid-19 pandemic has reshaped many aspects of life, and the latest figures for the £1m+ housing market in Scotland reveal yet another departure from trend. Counting only homes registering values over £1m+, and excluding the likes of farms, estates, land or commercial buildings, 2021 has seen a staggering jump in sales at the top of the market. Over the course of 2021, there were 419 registered home sales over £1m, which was almost 50% higher than during 2020, which itself was the highest recorded figure since the 2007 market boom.
In terms of values, the average £1m+ house sale in 2021 was £1,392,000, down slightly from values of over £1.4m in the preceding 3 years. This has been due to the volume of units now breaking through the £1m threshold. House price inflation across the market has seen the number of homes selling just £50k over the £1m+ threshold increase by 85% from 2020 to 2021, rising from 12% of the £1m+ market to 15%
A key trend in the wake of the lockdown in Spring 2020 has been the race for space and lifestyle, and the £1m+ market has been no different.
Analysis of sales shows that the proportion of £1m+ homes being bought in urban areas has fallen from 83% in 2019 to 76% in 2020 and 2021. While the proportion of homes being bought in remote locations has risen, the most significant increase has been in accessible towns and rural regions outside main urban centres. This includes north of Stirling, east of Loch Lomond, in and around Newton Mearns, Melrose, East Lothian and the East Neuk. All these destinations offer high quality lifestyle and houses, while maintaining connectivity with Scotland’s main economic centres.
The transactional volumes at all price points for residential properties in Scotland in 2021 were substantially up from the previous year.
This was in part response to a correction following the first lockdown in 2020 and increasing buyer confidence at a time when the supply of available properties remained constrained.
Transactions over £1m were strong in the cities and the suburbs, coupled with much higher demand for rural locations.
People are adjusting how they work and the need to be within relative close proximity to a city is of less importance as many people continue to work remotely from home or in a flexible manner. Country properties have been in strong demand with local, national and international buyers often competing for the same property.
This year 2022 has started well with more buyers than available houses and flats on the market, which is likely to result in prices increasing for the time being. Regularly we are receiving multiple bids at closing dates through out Scotland.