Return Of The Million Plus Market
Demand for prime properties for sale at £1m plus is on the rise again in Edinburgh after a sharp decline in activity immediately after the introduction of the Land and Buildings Transaction Tax (LBTT) on the 1st April, according to CKD Galbraith.
The first three months of 2015 saw a staggering 56 properties sold at £1m plus in Edinburgh alone. The final surge came the week before the introduction of LBTT when 30 of the 56 sales were completed under the old Stamp Duty system. Under LBTT, the buyer pays different rates of tax on the portion of the purchase price that falls within various bands, rising to 12% for the portion of the purchase price over £750,000.
CKD Galbraith handled 16 sales in excess of £1m in the six months leading up to the introduction of LBTT. Of these 16 sales, 14 were sold at the asking price or over demonstrating the firm’s knowledge of the high-end market.
Registers of Scotland recorded a dramatic decline in subsequent sales at the £1m mark from April until September with only three sales successfully completed in Edinburgh. However, CKD Galbraith is now reporting signs that prime property buyers are stirring again and the dry spell might be about to end with an increase in buyer interests in the capital city’s million plus market.
Jamie McNeill, Head of Residential at CKD Galbraith’s Edinburgh office, said:
"Our recent research shows that buyer and seller confidence is returning following the introduction of LBTT in April and the UK General Election in May, with an increase in the number of properties coming to the market in Edinburgh. We are currently handling a number of private sales in the £1m plus market in Edinburgh and are experiencing a rise in the number of local, national and international buyers registering with our Edinburgh office looking for prime property in the city centre. With the tax changes for properties over £1m, the number of sales at this level is considerably lower than at its peak in March this year, however we expect the number of transactions at this level to continue to increase throughout the remainder of the year."
There are currently 46 properties on the open market in Edinburgh at £1m plus and a further seven under offer according to figures gathered from Rightmove, OnTheMarket.com & ESPC.
Jamie added: "Whilst the prime Edinburgh market remains price sensitive, demand for high quality property remains strong. It is therefore imperative your property is marketed as effectively as possible and in a professional manner. CKD Galbraith specialises in the sale of exclusive properties and with our local knowledge, experience and national presence, we are particularly well placed to advise on the marketing and sale of prime residential property in Edinburgh."
For further information, please contact CKD Galbraith’s Edinburgh office on tel: 0131 240 6960