Scottish country market finishes 2021 on a high

Scotland’s country market enjoyed its best performance in four years in 2021, with the impact of the pandemic driving demand.

Exchanges in Scotland’s country market were up 15% in the first eleven months of 2021 versus the five-year average (excluding 2020). In the same period, the rural business achieved its most exchanges since 2017.

The number of viewings, up 46% in the first 11 months of 2021 versus the five-year average (excluding 2020), were at their highest in the period since 2016.

“The rural market in Scotland this year has been driven by people making lifestyle changes enabled by flexible working. The pandemic has turned things on its head. Buyers no longer worry about being within a 20-minute commute of a town or city,” said Tom Stewart-Moore, head of Knight Frank's rural business in Scotland.

The Scottish property market re-opened later than in England last year on 29 June. After a later finish in 2020 due to the pandemic it has returned to its seasonal rhythms, with a new wave of supply expected in the spring.

Given this, there was no change in quarterly price growth between Q3 and Q4 in the Prime Scottish Index. However, prices in the 12 months to December finished the year up 5.8%. This is the strongest year-end performance since 2008.

As with other parts of the UK, demand has outstripped supply in Scotland’s rural market throughout 2021. While market valuation appraisals were up by 25% in November versus the five-year average (excluding 2020) as prospective sellers took stock, the ultimate decision whether to sell in 2022 will come over the Christmas break, and the developing situation with the Omicron variant will affect this.

However, demand remains high. New prospective buyers registering with the Scottish country business were up 203% versus the five-year average (excluding 2020) in November.

“I believe the trends that have driven the market this year will continue in 2022. It should be another good year, with competition for the best properties, and sellers that go early will do well,” added Tom.

Scotland’s country market has benefited from buyers’ greater work flexibility due to the wide adoption of hybrid working by employers, which saw increased numbers of English buyers looking north of the border.