Rettie Property Research Services

The latest Build to Rent (BTR) Market Review from Rettie shows that strong underlying market fundamentals have kept Scotland’s BTR sector alive, however, there has been very slow progress over the last year and no new investment in the sector for the best part of two years. While a number of schemes have achieved practical completion over the last 12 months, 2024 to date has seen the fewest number of new units entering the pipeline since 2015.

It has not been a balmy summer, but neither has it been a wash-out. The same can be said for the recent performance of the housing market both in Scotland and in the wider UK, which can best be described as ‘a little tepid’.

Over the last 12 months, 13 of the top 20 settlements in Scotland (ranked in terms of average house price) were located by the coast. Elie and Earlsferry took the number one spot with an average house price of £869,459. Gullane in East Lothian was second, with an average house price of £504,139, while St Andrews came in third, with prices averaging £490,361.

As we have passed the close of the financial year, it is time to take our annual delve into the performance of Scotland's Land & Buildings Transaction Tax (LBTT), in order to see how returns and receipts have performed across 2023/24 compared with previous years.

The East Lothian housing market is flourishing, boasting the second highest average house price in Scotland, trailing only behind Edinburgh. This growth, with a notable 2.8% increase in the past year, underscores the area’s appeal with its diverse lifestyle options and excellent transport links to both Edinburgh and London. We discuss in this briefing how these unique lifestyle opportunities have been pivotal in sustaining demand in the local market.

Perth and Kinross peaks above Scottish average.

Prime market stays strong … During 2023, the prime £1m+ market withstood the challenging headwinds better than the overall market, with the number of sales slightly increasing on the 2022 total to a new record annual high of 506 sales.

Over a quarter (28%) of households in Scotland face one or more forms of housing need, according to a new report.

This time last year, the housing market and wider economy had been thrown into turmoil by the UK Government’s Autumn Mini-Budget, with the mortgage payment on the average Scottish house purchase increasing by almost 60%.

As East Lothian locals know, the area is well known for having its own unique microclimate. Rain may be settled over the capital, but a short drive east will often reveal blue skies and a warm breeze. This happy distinction is also true of the East Lothian housing market.

Scotland's housing market's performance has been dominated by ‘events’ over the past 15 years or so, beginning with the collapse of Northern Rock at the end of 2007, which signalled the end of the mortgage credit boom across the UK.

Despite the summer season, the Scottish BTR sector is experiencing a somewhat gloomy 2023, but there is still hope for an Indian summer.