A renewed appetite for space, mainly as a result of the lockdown, has triggered a revival in Scotland’s country house market, particularly from town and city dwellers. More garden and outdoor areas, as well as homes with a separate space to work, are currently top of buyer wish lists, as they look to rediscover the pleasures of country living.

Our survey of buyers and sellers revealed that 55% found a countryside or village location more attractive than before Covid-19. This explains the two-fold rise in the number of buyers registering and viewing our country houses in Scotland during July and August 2020 compared with the same period last year.

Consequently, the combined number of agreed sales during July and August 2020 in country areas spanning Ayrshire, Angus, Argyll, Highland, the Borders, Dumfries & Galloway and Scotland’s heartland of Fife, Perthshire and Stirlingshire was 45% higher than the same period last year.

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A key difference in today’s country market compared to the scenario prior to the 2008 credit crunch is pricing, which is now more in line with buyer expectations following a period of adjustment.

As a result, the level of agreed sales in a number of areas is slightly ahead of the number of new instructions – an indication of a more balanced market. This is despite the absence of international buyers, a key component of the Scottish market, which has been particularly constrained by restrictions on overseas travel.

Prime values in Scotland’s village and rural areas remain on average 25% below the peak of 2007. This sits in stark contrast to city and town areas, where prices are just 2.1% below that previous high point, a figure that underscores the relative value on offer in the country, particularly when property size is considered.

Across Scotland, the price gap between properties in urban and surrounding areas has begun to narrow, as buyers consider life in the countryside. But due to the discretionary nature of country markets, appropriate pricing is key to sustaining current momentum, particularly given the prevailing economic uncertainty.

Million pound market

Following a near record-equalling 288 transactions last year, Scotland’s million pound market picked up where it left off before lockdown. There have been 47 agreed sales in July and August compared to 40 in the same period last year, according to TwentyCi. Normally, Edinburgh dominates this market. However, two-thirds of agreed sales in July and August took place in country locations, most notably in Perthshire and East Lothian.

Looking at recorded £1 million-plus transactions, Scotland saw 89 in 2020 between January and July compared to 137 in 2019 over the same period, which reflects delays in completions as a result of lockdown. That said, the 2020 figure is the same as the 10-year average, which demonstrates market expansion at the top end in recent years.

The market above £2 million has recorded 16 transactions already this year - the highest January to July total since 2007. This includes a sale at £2.9 million in the West End of Glasgow, a record for the city. This rarefied part of the market is set to grow further as a number of agreed sales, including some over £4 million in Edinburgh, have yet to be recorded.

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}