Analysis: Liquid cash keeps values buoyant

Published on Sunday 1 May 2011 16:45

These figures reinforce a number of points we have been very conscious of. The top end of the housing market is operating relatively well, because by and large it does not depend upon high loan-to-value ratios.

Indeed, we have completed sales on behalf of clients where no borrowings were required, and we have a significant number of clients who have between 1 million to 3m of liquid cash to spend in Scotland.

Many 1m properties have been held back from the market as the owners tend to have a greater choice and flexibility of timing due to increased liquidity. That said, eventually circumstances such as death, divorce and job relocation dictate a sale.

Many owners of 1m properties are now realising that the upper end of the market is not inextricably linked to less valuable sectors.

It is not surprising that half of the 1m-plus sales have been in Edinburgh, a major European capital city and destination.

In addition, the Scottish country house is now becoming recognised as a highly desirable asset. Many people have realised that buying a 1m home in Scotland often allows access to fishing, shooting, deer stalking, golf and other outdoor pursuits on a scale that can not be rivalled in the south.

• Richard M Seaman MRICS, is a partner in Goldsmith & Co, specialising in country house and estate sales