Market Overview: Continued Demand for Rural Land

Demand for land remains high across the rural property spectrum, from standalone, working farms right through to small parcels and pony paddocks.

In coastal Angus, prime arable land can reach up to £20,000 per acre, reflecting the area’s high yielding soils for crops, fruit and vegetables. Secondary arable and temporary grassland prices have seen slight increases over the last two years, while poorer quality parcels remain stable.

While there’s been a decrease in land brought to the open market, private deals continue as neighbours are quietly approached and take up what may be a “once in a lifetime” opportunity to buy the land next door. Interestingly, estates like The Crown are selling to sitting tenants, boosting owner occupation and further reducing areas held under tenancy.

The Scottish estate market has seen private deals continuing, though natural capital buyers and forestry investment companies are quieter compared to a few years ago, with the heat in the market not quite what it was in 2023. Political factors are influencing traditional Scottish sporting estates, with deer management requirements, Muirburn limitations, and the potential for grouse shoot licenses affecting freedom of ownership.

Stalking estates are adapting to increasing deer numbers, with good larder facilities becoming essential. On the rivers, poor catches exacerbated by drier summers in some areas could impact salmon values and rental figures for fishing estates.

Forestry, as always, still offers tax benefits, but demand for new planting land has slowed, leading to reduced prices from the highs of 2022. Significant delays in approval processes in Scotland are affecting initial cash flows, while existing commercial woodland properties remain in demand, albeit with declining values. The future will see more stable returns than the highs of recent years for both the forest asset and the timber produced. At a local level, small amenity woods remain popular and increasingly community purchases reflect the general population’s interest in nature.

In the North of England, land values remain relatively steady, with ongoing activity across the region. It is certainly fair to say that higher UK interest rates and economic uncertainties globally have tempered premiums over guide prices across all sectors of the property market in the UK.

Embracing Opportunities in the Scottish Highlands

As we transition into the vibrant months of May and June, Bell Ingram is delighted to report a surge in property listings following a damp start to the year. The Scottish Highlands, with its breathtaking landscapes and tranquil environment, continues to attract a diverse range of buyers, and our estate agency is at the forefront of this dynamic market.

High Demand for Semi-Rural Properties

One notable trend we’ve observed is the increasing popularity of semi-rural properties. These homes, offering a perfect blend of solitude and accessibility, have captured the hearts of many buyers. Properties that are set alone yet provide easy access to local amenities are particularly favoured. At Bell Ingram, we have been witnessing high demand in this segment, with numerous properties selling at a significant uplift. This trend underscores the unique appeal of the Highlands, where residents can enjoy the peace of rural living without sacrificing convenience.

Middle Market Momentum

The middle market has also shown remarkable resilience and growth. Buyers in this market have found it easier to secure mortgages, fostering greater confidence and activity. This accessibility to financing options has invigorated the market, allowing more individuals and families to pursue their dream homes in the Highlands.

Looking Ahead: Market Expectations

While the market is currently robust, we understand that some buyers remain cautious, waiting to see if the Bank of England will lower interest rates. Should this happen, we anticipate an even more buoyant market. However, we are mindful that this potential uptick could coincide with the quieter summer months, when many people are enjoying their holidays. Regardless of these seasonal fluctuations, Bell Ingram is prepared to navigate these changes, ensuring our clients receive the best possible service and opportunities.

Why Choose Bell Ingram?

Bell Ingram’s deep-rooted expertise and local knowledge make us the ideal partner for those looking to buy or sell property in the Scottish Highlands. Our team is dedicated to providing personalised service, leveraging our extensive network and market insights to deliver exceptional results. Whether you’re seeking a secluded rural retreat or a conveniently located home, we have the resources and commitment to help you find your perfect property.

For more information on our listings and services, please visit click here,  or contact our team directly on 01463 717799. We look forward to helping you find your dream home in the Scottish Highlands.

Additional Dwelling Supplement and what it means for second home owners in Scotland

Our Oban Estate Agent Andrew Fuller discusses Additional Dwelling Supplement in Scotland.

The Additional Dwelling Supplement (ADS) is a tax measure in Scotland aimed at curbing the acquisition of second homes and investment properties with the hope of promoting home ownership among residents. The tax applies to the purchase of additional residential properties, including holiday homes and buy-to-let properties and is applicable if the total purchase price of the property exceeds £40,000.

Anyone purchasing a second or subsequent residential property in Scotland may be liable for ADS. This includes individuals, companies, and other entities. It’s important to note that ADS is payable in addition to the standard Land and Buildings Transaction Tax (LBTT). For example, if you already own a home and decide to buy another, you will be required to pay ADS on the new property, regardless of whether it’s an investment or a holiday retreat.

The ADS rate is currently set at 6% of the total purchase price of the property. This rate is applied uniformly, meaning there’s no tiered system as with LBTT. For instance, on a property purchased for £250,000, the ADS would amount to £15,000. As demonstrated, ADS can result in a significant addition to the overall purchase price. As professional estate agents, it is our duty to make purchasers aware of the ADS in order that this tax can be factored in pre-offer.

Bell Ingram Oban recently listed a single portfolio of three island properties, comprising three-bedroom family residence and two self-contained one-bedroom holiday letting cottages, all set within around 19 acres of coastal frontage. Whist the main three-bedroom residence is highly likely to become a family home, the two letting cottages are each subject to the ADS. In this instance, the valuation of the main house is covered by the mortgage valuation within the Home Report, therefore an independent valuation is required to determine the taxable value for each cottage.

The implementation of ADS reflects the Scottish Government’s commitment to improve housing affordability and availability for primary residences by discouraging the acquisition of multiple properties by investors and/or wealthier individuals. The aim is to level the playing field by giving first-time buyers a better chance in a competitive property market. Prospective buyers of second homes or investment properties must carefully consider this additional cost when planning their purchases.

If you are looking for property advice in the Argyll & Bute region, contact our Oban team on 01631 566 122 or email Andrew.fuller@bellingram.co.uk.

Dervaig Emerges as a Property Hotspot on the Isle of Mull

The picturesque village of Dervaig on the Isle of Mull is rapidly becoming a sought-after destination for property buyers, with recent market activity highlighting its appeal. In a testament to the village’s increasing popularity, two stunning three-bedroom properties, Tigh na Cuilce and Cuin Beag, each recently went under offer within just five days of their respective listings.

Nestled amid the stunning natural landscape to the north of the Isle of Mull, Dervaig combines natural beauty with a rich cultural heritage, making it an ideal location for both permanent residents and those seeking a tranquil holiday home. The village’s charm, coupled with its strong community spirit and convenient access to local amenities, is attracting a growing number of buyers.

“I am thrilled to see such a dynamic interest in Mull’s property market,” said Andrew Fuller, resident of Mull and estate agent at Bell Ingram. “The immediate interest in properties such as Tigh Na Cuilce and Cuin Beag  is a clear indicator of the village’s appeal and increasing demand for homes in this beautiful part of Mull. Buyers are captivated by the idyllic island location, scenic views, and the community lifestyle that villages such as Dervaig offers.”

Dervaig is surrounded by breathtaking landscapes, including forests, hills, and coastal views, making it a perfect retreat for nature lovers. The village boasts a strong sense of community, with local events, activities, and amenities that enhance the quality of life for residents. Dervaig also offers good transport links to other parts of Mull and further, to mainland Scotland, making it an attractive option for those seeking a peaceful yet connected lifestyle.

“Another three-bedroom property within the village, Tigh Na Creag, has also witnessed a recent surge in interest. This wonderful family home offers far reaching views across the surrounding countryside and also includes an optional development plot with planning permission.”

For more information about properties in Dervaig and across the Isle of Mull, or to register for updates on new listings, please click here.