As senior business figures warn of a “bankers’ exodus” from Edinburgh to London, some property commentators are predicting that the result will be an over supply of top end property, with continued pressure on prices.
It has been reported that senior employees in the banking industry who have until now divided their time between the Scottish and English capitals are spending an increasing amount of time in London, taking the trappings of their luxury lifestyle with them.
Two in three Edinburgh homes worth £1 million or more are thought to be owned by senior bankers.
Matthew Sinclair, Director of Saint Property, says: “A migration of bankers and leading figures from associated professions, such as accounting and insurance, to London would certainly have a weakening effect on the property market, causing a ripple effect from the top down.”
Research by Saint Property suggests Edinburgh already has a good supply of property for sale at the top end, which will only increase if the anticipated departure of top earners takes place.
Saint Property’s research shows there are currently 26 properties on the open market in Edinburgh with an asking price of £1.5 million or more, worth a total of over £50 million.
The average price of one of these properties is just under £2 million. The highest number of properties in this price bracket can be found in Edinburgh’s central New Town, and the highest average asking price per square meter can be found in the leafy southern suburb of the Grange.
But the number of properties in this price bracket would be significantly higher if homes being sold on the private market were to be taken into account; in Edinburgh these off-market sales have been a common way for deals at the top end of the market.
According to Sinclair: “Expats living in the Far East are the most likely to take advantage of an over supply and subsequent drop in prices. Those seeking a base in the UK for a holiday home or a family home to return to will find an excellent choice of top-end property in Edinburgh and value for money in terms of price per square meter.”
Meanwhile, according to Peter Strang Steel of Strang Steel Property search, there may well be a surge in rural properties coming to the market too as a result of the Government’s proposals to restrict the use of “loss relief” – one of the most attractive tax breaks for holiday homes.
