In recent years, a modest rise in prices in some of Scotland's country locations has supported strong transactional growth. Overall activity improved by 3% during the last 12 months, however, Argyll & Bute bucked the trend with the number of transactions increasing annually by 10% over the last year. Prime transactions above £400,000 reached a record 77 with a growing market in the Oban area.

Whereas the wider transactional market in the heartland of Fife, Perthshire and Stirlingshire remained steady, the number of sales above £600,000 increased by 16%. Fife witnessed a 4% annual increase in overall transactions. Prime activity in St Andrews continues to grow, and new build activity is supporting mainstream growth in some of Fife’s commuter locations.

While Stirlingshire saw a surprise drop in transactions, the prime market in the city area of Stirling, Bridge of Allan and Killearn remained steady.

Perth & Kinross also experienced a steady transactional market over the last year, with the exception of the second hand market in Aberfeldy and the new build market which outperformed. Meanwhile, prime transactions increased annually by 9%, led by village locations around the city of Perth and also Crieff.

In the north, the hub of Inverness led the Highlands market with a rise in both prime and new build transactions.

Ayrshire saw little change in prime transactions over the last year. However, mainstream transactions increased by 5%, led by the second hand market in Ayr, Prestwick and Troon and new build market in North Ayrshire.

The prime Borders market witnessed a drop in transactions mainly due to reduced activity in Berwickshire, however, the market in Peebles remained steady. Meanwhile, mainstream activity improved in Galashiels, Melrose, Hawick and Lauder.

The residential market in Dumfries & Galloway continues to recover, led by increased prime activity in Castle Douglas and areas surrounding Dumfries town.

The beauty of Argyll & Bute

Argyll & Bute, on the west coast, was Scotland’s top-performing residential market during the first half of 2019, recording a 15% rise in the number of transactions compared to the same period in 2018. The average house price during June 2019 reached £178,714 according to Savills Research, 4% higher than the figure during June 2018. On top of all of that, prime transactions above £400,000 in the area reached a record 77 over the last year.

The waters off the west coast of Scotland are famed for challenging sailing and stunning scenery. The surrounding countryside provides an abundance of outdoor and sporting activities. As a result, Argyll & Bute attracts a range of buyers, many of which originate from outside the local area and Scotland. Over the last five years, almost half of our buyers in Argyll & Bute have come from outside Scotland.

The seaside hotspot of Helensburgh remains the hub of its residential market, accounting for a quarter of its transactions. Supported by increased new build activity, these rose by 15%. Meanwhile, Oban saw the size of its prime market double from 9 to 18 transactions.

Looking ahead, Argyll & Bute faces the ongoing challenges of supply shortages. There are 12% fewer properties currently available to buy compared to last year. Against the context of strong demand, this is likely to keep upward pressure on values.

_{Read the articles within Spotlight: Scotland Residential below.}