Million-pound homes in the Capital go through the roof

Published on Tuesday 29 January 2008 09:16

THE number of million-pound homes sold in Edinburgh has soared in the past year, with at least one a month now fetching more than £2 million.

Estate agents say that the top end of the market has remained buoyant despite the wider UK economic slowdown and reduced consumer spending.

Some of the country's top residential properties, such as the mansion on Barnton Avenue that once became Scotland's first 4m home when it was bought by David Murray, are now expected to fetch up to 5m.

And those with a budget of 2m to spend can no longer expect to be able to afford a well-kept New Town townhouse.

Estate agent Rettie & Co, which deals in expensive homes, said it sold 70 properties at more than 1m, with 14 of those selling for more than 2m. In 2006, there were only nine sales above 2m and 43 breaking past 1m.

Although recent figures have shown growth in the property market cooling in the second half, following the Northern Rock and credit crises, agents say the top end continues to perform better than the rest of the market.

Tony Perriam, Edinburgh-based director of Rettie & Co, said: "It really is a market of two halves at the moment. Those buying family homes above 1m have been largely unaffected by all that has been happening.

"But there is no doubt that for that 450,000-850,000 sector, mortgage borrowing is a bit more 'wait and see'. The upper end is much more immune to the vagaries of property."

He added that those who had successfully gambled on the stock markets during recent turbulence could be fuelling a stronger than usual start to 2008.

Fellow top-end agent Strutt & Parker said it has seen two sales above 2m so far in its year from April 2007, as well as 13 sales above 1m.

Maurice Allan, a negotiator for Strutt & Parker in Edinburgh, said: "The difference between the top end and the rest is that there are fewer properties that come on to the market, and demand for those continues to be high. When the right properties come on there tends to be very strong competition.

"We are much busier now than we were 12 months ago or even 24 months ago."

Jamie Macnab, a partner at Savills, added: "You would struggle to get a real top house for 2 million. In a way, it might not be that special for that.

"You would get a decent terraced detached New Town townhouse but you wouldn't be able to afford the best townhouses.

"Two years ago you would be able to have got pretty much any property in Scotland but not any more."

Among the recent big-money sales in Edinburgh was the 4.95m sale of Sir David Murray's Woodcroft property on Barnton Avenue in August, just ten months after he bought it. An exclusive address at Easter Belmont Road fetched 4.87m in September, while the rare appearance of a Hermitage Drive property on the market earned the Morningside home a 3.73m price tag in October.

The Edinburgh Solicitors Property Centre said it saw nearly 50 sales above 1m in 2007 – almost double the 25 recorded in 2006. Currently it is advertising a four-floor Georgian townhouse at 6 Regent Terrace for offers over 2.25m.