Housebuyers put off by doubt over scotland future

Wealthy buyers are being deterred from entering the top end of the Scottish property market because of uncertainty over September's referendum on Scottish independence, according to estate agents.

A slowdown in transactions is typical before major votes when matters such as future taxation are unclear – "the general election effect", as one agent put it. But the referendum adds uncertainty related to the currency and interest rates.

Although the mid-market is buoyant, with agent Savills reporting a 100% increase in the number of London-based buyers registering an interest in Scottish property this year, some wealthier buyers are pausing for thought.

Matthew Sinclair, director of buying agent Saint Property Search, said talk of some financial services firms relocating in the event of a yes vote could have discouraged some buyers. "I think there are people who are thinking it would be nice to move and mortgage finance is more available but is our job going to be here in a year's time? I think the element of uncertainty is holding people back," he said.

"There is a hesitancy at the top end of the market where significant land ownership is involved," said George Lorimer, partner at estate agency CKD Galbraith. "People are thinking very carefully about what the outcome of the referendum could mean for them." He added: "We've had a strong quarter but there is a degree of nervousness about the next quarter. It is the general election effect – people start to get worried about the uncertainty and don't want to do anything until they know what is happening."

Scottish house prices remain below their 2007 peak at an average of £125,000, despite figures from the Registers of Scotland showing a 3.5% year-on-year rise in the first quarter of the year, and some areas recording double-digit increases. Savills said it expected a no vote to lead to a 25% increase in property prices in Scotland over the next five years. "Those people who are comfortable with whichever way September goes may see opportunity at the moment," said Sinclair.

Jamie Macnab, director of country house sales for Savills' Edinburgh office, said among some potential buyers of big estates "there is a nervousness as the polls seem to be tightening ... Once the shadow of the referendum is lifted prices are poised to rise - they are so cheap, the market has to increase."

Source: The Guardian(UK.)