Why the Scottish property market is in a ‘bubble that will burst’

Aberdeen, Dundee, Angus and the Scottish Borders also recorded respective increases of 59pc, 46pc, 28pc and 30pc. In Edinburgh and Glasgow, sales increased by 14% and 11%.

The shift to working from home after the lockdown also brought movers from further afield as well as second home buyers. In the West of Scotland, 60% of Savills’ deals so far this year have been with buyers from outside Scotland, mostly from England, Mr Ewer said. Before the pandemic, the share was 40pc.

For more expensive homes, buyers paid 10% more than Home Report, the amount the property is assessed by surveyors and the maximum banks will lend to. For country properties, buyers offering 20 to 30 percent more than this price are common, according to Ewer. “And if you have a vacation home by the water, you look at over 35sqft. Excessive bids should be compensated in cash, as mortgage lenders will not cover the difference.

Overall, agreed sales in the first half of the year were 12% above 2019 levels, according to Savills. Yet technically this means that in terms of transaction volumes, Scotland is underperforming. Across Britain, agreed sales increased 36% over the same period.

Agents blame a shortage of supplies. “We are down 25% on on-hand inventory compared to 2019,” Mr. Ewer said. “But demand levels increased by 165 pc across Scotland.”

Mr. McEwan said, “We would normally have 1,000 properties on our books. Right now we have 400. There are more buyers who want to relocate to change their lifestyle, but sellers don’t want to register until they find a place to go. ‘to install.

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