Price of first £1m new-build house is a sign of the times

Published on Saturday 27 September 2008 10:57

THE first new-build home in Scotland to sell for over £1 million is back on the market after eight years – for just £350,000 more.

The price of the six-bedroom home, at Inveresk Village in East Lothian, is seen as a further sign of the slowing property market, as other homes have more than doubled in the same period.

The property, named Orchard House, was built by Cala in 1999 and is returning to the market for the first time since.

It has 1.47 acres of garden on the site of an ancient settlement, with part of it being listed as an ancient monument.

Willie Hunter, partner-in-charge at Hunters Residential, and also a director of the Edinburgh Solicitors Property Centre, said: "On the face of it, 1.35m seems fairly low, but, first of all, it is offers over, so the selling agent will hope to achieve a much higher figure.

"Secondly, you have to take account of the market conditions we have at the moment.

"Property in East Lothian has slowed a lot faster than other areas, including Edinburgh and West Lothian. I'm not entirely sure why that is, but that is what the figures are showing.

"If this had been a year ago, it would have been a different market altogether. It would have probably been on at a much higher figure a year ago, but it's a sign of the times."

The Inveresk development by Cala had attracted the opposition of residents, including Clarissa Dickson-Wright.

When it sold in 2000, it was seen as a sign of the buoyancy of the property market.

The owners have carried out a host of improvements since it was built, including installing a Clive Christian kitchen and transforming the space above the triple garage into a games room/gym and bar.

Peter Lyell, a director at estate agent Savills, said all sectors of the market were now slower.

He said: "Even at 1m-plus, if you are a buyer the chances are you are moving up from the 800,000-1m level yourself, so you are also affected. A chain effect is coming into play now. People say they would be delighted to buy, but they need to sell first."

He said that the price tag for Orchard House seems "reasonably sensible", although he expects that the sellers will hope for more.

He said: "People are now taking more advice and lowering their ambitions to reflect the market.

"Last year was a vintage year for prices, but it really has come back now.

"You would probably also find that a more traditional stone-built will sell more readily than a newer house of this type."

The property is being sold by Strutt & Parker. Selling agent Andrew Smith was not available to comment.