A period of change

The performance of Scotland’s housing market since it reopened at the end of June is being driven not only by a release of pent-up demand that was present before the lockdown, but also by changing buyer needs, with a renewed appetite for space.

The experience of Covid-19 has caused potential buyers to reconsider their work-life balance, with a greater commitment to moving, not just in the next 12 months but also in the shorter term.

Consequently, the number of sales subject to contract (SSTC) during July and August 2020 was 60% higher than the same period last year, according to data provider TwentyCi (see chart, below).

As we look forward, despite a healthy build-up of new buyer registrations and a rise in viewings, both buyers and sellers will need to remain pragmatic if the current levels of activity in the market are to be sustained, given the economic uncertainty.

While the market will remain price-sensitive, Scotland’s value gap and the behavioural change sparked by the experience of lockdown underpin our expectation of modest price adjustments in the short term before a return to growth, supported by economic recovery.

For more information, please contact a Savills office in your area or arrange a market appraisal with one of our local experts.

_{Read the articles within Scotland Residential – Autumn 2020 below}