Sales of £1m homes in Scotland hits all-time high

House sales worth more than £1m in Scotland have hit a new high, according to new research.

Estate agents Rettie and Co revealed there were 506 deals for homes of over £1m in 2023, up from the previous record of 504 in 2022.

The study showed the market continued to be dominated by Edinburgh and the east which accounted for 50% of overall sales, however, there has been an increase in bigger sales across Glasgow and the west.

It comes as more than 10,000 people signed a letter demanding the First Minister declare a housing emergency.

In the last year, three councils have declared housing emergencies due to mounting pressures in their local housing system and other authorities are warning they will be next.

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Councils say funding and legislative change is crucial in order to help them respond to current challenges.

Glasgow and the west accounted for 134 of the house sales that hit over £1m, a stark increase from the fewer than 30 sales in the same price range just six years ago.

Managing director Simon Rettie noted there was a 20% decline in sales across Edinburgh saying that “higher interest rates and buyer confidence” had been a factor.

“St Andrews and East Lothian continue to outperform the market with an increasing number of sales over £1m,” he said.

“For 2024, we forecast a gradual improvement in both buyer confidence and the rate of prime sales aligned with a drop in interest rates.”

The research found that the EH3 postcode, which hosts Edinburgh’s New Town and West End, was the number one location for £1m plus houses with 46 sales last year.

EH10, which host the capital’s upscale Morningside district, fell from the top spot in 2022 to number two last year with 43 sales.

KY16, a postcode in St Andrews, saw continued growth coming in at number six with 21 sales and marked the first location in the top ten not within Edinburgh.

G12, which covers Glasgow’s West End, was the first in Scotland’s largest city to make the top ten list with 17 deals in 2023.

The record high comes after what Dr John Boyle, director of strategy and research at Rettie, called a “difficult year” for the Scottish housing market as a whole.

“However, the overall outcome was not as bad as some had initially feared at the end of 2022.

“In fact, the average house price was actually up 0.8% for 2023, although market transactions were down nearly 10%.

“What is clear, is that the prime £1m plus market withstood the market head-winds better than the overall market.”