Scotland’s rural property market to 'bounce back' after lockdown

The level of interest in the Scottish farmland market appears to be 'relatively unaffected' by the coronavirus lockdown measures, according to Galbraith
The level of interest in the Scottish farmland market appears to be 'relatively unaffected' by the coronavirus lockdown measures, according to Galbraith

Scotland's rural property market is set to 'bounce back' as soon as the lockdown ends due to 'significant pent-up demand', according to property consultants.

The government issued guidance on 26 March advising people in the stages of buying or selling their home to delay while emergency Covid-19 measures were in place.

However, there are now positive signs that the movement restrictions may potentially be softened towards Mid-May or early June for at least some business sectors.

"Although a great deal of uncertainty remains, we anticipate the more rural property market is likely to rebound positively," said Duncan Barrie, a partner with rural property consultancy Galbraith.



The number of new instructions waiting to sell is equal to the level that would be expected at this time of year, he added.

At the beginning of the year the firm experienced a healthy demand for rural property, and this continued until agency activity was put on hold at the start of the lockdown period.



"It is clear from conversations with buyers and sellers that they want to continue as planned as soon as they can, whether they are midway through the process of a sale or at the very start of house hunting," Mr Barrie said.

In relation to the farmland market, the level of interest appears 'relatively unaffected', he said, with farmland now seen as a 'potential safe haven' when compared to stocks, shares and other asset classes.

"We are aware of buyers being keen to take advantage of even lower interest rates in relation to their purchase of farmland," Mr Barrie added.

Galbraith's property sales during lockdown include sales of Ballygreggan Farm by Campbeltown, Portencalzie by Stranraer, and Langdale by Girvan.

Meanwhile, successful closing dates have been held for Old Kirk Farm by Alexandria and East Tarbrax Farm by Shotts.

In general. the demand from potential purchasers for rural property has in some areas of the country exceeded the same period in 2019, the property firm said.

And in the past week, four of the UK’s major mortgage lenders have announced more generous terms for borrowers, including an extension in their loan-to-value ratios, reduced mortgage fees or an increase in the maximum loan offered.



This will further boost the property market, Galbraith believes.