Scotland’s new homes market has witnessed a steady recovery in activity levels since the reopening of the market. This has been supported by developments with mainstream properties up to £400,000, with the Land and Buildings Transaction Tax (LBTT) temporary rate reduction and various government incentives being the main drivers of demand.

Our survey of buyers and sellers showed a commitment to moving in the short term, particularly with a desire for more living and outdoor space. However, this favours Scotland’s second hand market, as demand remains strong for built properties. There is also strong demand for prime new build city and suburban properties that are due to be complete by the end of 2020.

However, we are starting to witness a healthy return of buyers to new home developments, given the certainty of fixed prices and the continuing opportunities to negotiate incentives to facilitate sales.

This presents a growing opportunity for developers to attract buyers who have failed to secure a second hand property due to competitive bidding and strong premiums being achieved over asking prices. But as ever, buyers are keen to maximise any incentives on offer to complete the deal.

Properties that are due to complete beyond 2020 may have to be incentivised if developers want to persuade buyers to opt for a new build product and secure sales this autumn, particularly in the prime city markets above £400,000.

As always, competitive pricing in line with location across all price bands is critical to maximise demand. Appropriate pricing relative to the current market conditions will remain crucial with the backdrop of uncertainty in the economy.

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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}