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.
A lot can happen in 9 months … It really is just 9 months since Kwasi Kwarteng introduced his mini-budget in September 2022. The resulting money market panic that seeped into the wider economy, including the housing market, is, of course, a matter of great regret for many.
Did you know? The average house price in the West End* in 2022 was £258,000, 28% higher than the Glasgow average of just over £200,000. *Postcode districts of G3, G11, G12, G13, G14 and G20
Our recent review of Scotland's Land & Buildings Transaction Tax (LBTT) shows that, in 2022/23, LBTT revenue reached a record high in Scotland, driven by a relatively strong sales market and rising prices.
2022 saw the Scottish housing market break the record for £1m+ sales in a year, with 504 transactions passing the landmark price, with Rettie now involved in the sale of over 1 in 5 transactions in excess of £1m. In fact, in just two years, the Scottish £1m+ market has risen by 80%.
2022 was an eventful year by any standards. Russia's invasion of Ukraine triggered a number of significant effects, with rising energy costs fuelling inflation and contributing to an ongoing cost-of-living crisis, while significant political upheaval during the year has led to economic turmoil.
As Summer 2022 ends, analysis by Rettie has highlighted the significant impacts to the Scottish housing market of the Covid-19 pandemic and how the market has recovered after a collapse following lockdown in the Spring 2020.
In 2021, the Scottish market for homes worth over £1m witnessed an unprecedented level of activity. 2021 saw a surge in sales, with 419 homes sales registered, up from a previous high of 289 seen in the 2007 market boom. The total value of £1m+ house sales in Scotland jumped to £583m.
As the pandemic closes in on its second Christmas click here to read our Winter Market Briefing.
Click here to read how the rental market in Newcastle is being impacted by the search for outdoor space.
As we emerge from lockdown restrictions and start to enjoy sharing a meal indoors with friends, visiting family members and perhaps dreaming of a foreign holiday, or at least a staycation somewhere in Scotland, the housing market remains the primary preoccupation for many households.