Prime Scottish property prices rise slightly in Q3
Prime Scottish country house prices rose by 0.2% between July and September, although the annual change in values remains in negative territory at -0.3%.
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While the market remains price sensitive following changes to purchase taxes in 2015 and 2016, demand has picked up as asking prices have become more closely aligned with buyer expectations.
Greater political certainty following the General Election has also underpinned confidence in the market with the prospect of another referendum on Scottish independence receding.
The strength of underlying demand can be seen from Knight Frank data showing an 11% year-on-year increase in the volume of property viewings between January and September 2017 and a 32% increase in deal volumes.
The latest data from the Registers of Scotland, meanwhile, which covers the first six months of 2017, shows an 18% increase in the number of residential transactions with a value higher than £425,000 compared with 2016, although this rise was driven mainly by the market up to £750,000.
Higher rates of Land and Buildings Transaction Tax (LBTT) continue to weigh on demand above this level and are likely to continue to do so.
As is the case across a number of markets in the UK, a shortage of properties being listed for sale remains one of the biggest challenges for the remainder of the year. The latest market survey of estate agents from RICS shows a gap opening between new instructions, a good indicator of future stock levels, and new buyer enquiries.
Read the full Prime Scottish House Index.