Scotland’s residential property market showed resilience despite political uncertainty in 2019, while a rise in new buyer registrations and viewing activity in early 2020 provides cause for optimism as a sense of urgency begins to return to the market.

The official UK House Price Index shows average prices in Scotland increased by 2.2% between December 2018 and December 2019, primarily driven by the hotspots of Edinburgh and Glasgow.

Alongside price growth, there was an increase in the overall number of transactions. Indeed, the million pound market recorded its highest level of activity since the previous peak of 2007. Activity below £500,000 was also strong though the market between £500,000 and £1 million remained more constrained, as high rates of taxation continue to restrict supply.

Looking ahead, we do not anticipate a major rise in house prices in the short term, though we do expect market activity to continue to grow given greater levels of buyer and seller commitment. However, 2020 will not be without its challenges. Alongside Brexit’s return to the headlines as trade negotiations begin, the spread of coronavirus may have a substantial impact on global economic growth. At the same time, governments and central banks are committing to support markets through the uncertainty. As such, buyer and seller expectations will need to align in order for demand to translate into activity.

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