'ALL RISE' in Scotland's top-end property market

As a leading firm of prime Scottish residential property agents, Bell Ingram has experienced more than a few ups and down since it began trading in Perth in 1899. And it could be argued that this latest turn of economic events is just another dip in a long series of ups and downs, but it feels like there is something a little different about this particular dip.

We are all witnessing both our home and work running costs increase (lets not get started on the price of oil) but nowadays we're all so much better informed; with access to 24 hour news reports, analysis, blogs and social media chatter as and when it happens, there is no longer any excuse for not knowing, at a moments notice, the general state of our economy and the trends in buying or selling anything from houses to fish cakes. But it's the effect that this has on us as individuals that can often be harder to predict.

It is true that the general level of affluence is now higher than it has ever been so while we're all feeling the financial pinch there is a lot more money around, and therefore security, to help us weather this latest, prolonged storm. Admittedly we've not been particulalry good at saving but we do know that we have a lot of value tied up in our homes.

Property has long been seen as a benchmark of the British economy and so what is the state of the UK residential property market, possibly the most talked about (and blogged) product ever and in particular the property that Bell Ingram likes best - the top-end Scottish variety?

It may come as a surprise to hear that transactions of top-end residential Scottish property (£400,000+) rose by almost 40% between 2009 and 2010 (source: myhouseprice.com) while transactions across all price bands rose only 7%. Encouraging numbers indeed, but this still leaves them over 50% below their heady 2007 level. In the past 6 months alone our offices across Scotland have seen significantly increased interest from both sellers and buyers, in particular the £400,000+ band.

Values are beginning to grow with offers over being used successfully once more but the gap between the average salary and the average property value continues to widen, alarmingly and mortgage applications are still in significant decline, making for very few (practically none) first time buyers. A lot of people are still tending to stay put and hold on to the equity held in their property although this number is now fewer and decreasing. Vendors are now growing used to more realistic pricing, albeit slowly, and we're once again seeing 'offers over' prices being successfully used.

The £1M+ market is showing signs of recovery with more now on the market and offers being made, but it will be interesting to see the impact that the 1% increase in stamp duty (to 5%) will have from this month. At the very top of this will most likely have almost no impact but it is the lower end that may be swayed.

A number of Bell Ingram properties for sale, which have been sitting on the market for longer than we would have liked, are now finally starting to move and Old Carpow in Fife is a fine example of this - a beautiful property that has been available for sale for several months longer than it should but that is now finally under offer at a good price. And this is the case for a number of our larger, more valuable preoprties already this year.

About 75% of properties are now going to Scottish buyers with only a small number to buyers elsewhere in the UK, a big change from three years ago when our Oban office in particular would sell most of it's West Coast Scotland and Islands property to buyers in England. Even though some may be moving to avoid tuition fees in England it's not as many as we may think.

Spring has sprung, the clocks have moved forward and we're looking forward to a year of renewed vigour with a slow and gradual increase in values and activity over next five years.