The average house price in Scotland is at its highest figure recorded for Q1 since 2003.
Registers of Scotland (RoS) revealed that house prices rose 3.5% in the first quarter of 2015/16 with the average price of a home in Scotland now standing at £167,765.
Research also revealed that the total number of sales across Scotland was at its highest volume for April to June since 2008.
RoS Commercial Services Director Kenny Crawford said: "The City of Edinburgh recorded the highest average house price at £237,286, a rise of 4.4% on the previous year.
“This percentage increase is slightly higher than the Scotland average of 3.5%.”
It was recently revealed that Scottish completions for residential development were 18% higher than the previous year and lenders Hope Capital and Mayfair Bridging have recently launched into the Scottish market.
Jonathan Sealey, Chief Executive of Hope Capital, said the reason for their move into Scotland was that the market there had become more positive following the referendum and election.
“We had begun exploring opportunities in Scotland earlier in the year and had a number of parties interested in working with us, so the time was right then to expand across the border,” said Jonathan.
“The political landscape in Scotland is now more settled and developers are looking at the country with new eyes.
“It’s still early days for Hope Capital in Scotland, but we have started lending and have had a lot of interest, our pipeline is healthy.”
Positive Commercial Finance also assist funding for Scottish development and Director John Waddicker felt the increase in activity in Scotland has been fuelled by the level of competition in England encouraging lenders to look further afield.
“Following the referendum there appears to be less reluctance from a lenders perspective to consider cases there,” said John.
“The age-old differences in Scots Law and English Law which lenders used to refer to as reason to avoid Scotland are evidently becoming less daunting!”
Neil Francis, International Trade and Investment Operations Director for Scottish Development International, revealed 2014/15 was a record year in terms of investment as 91 international companies invested in Scotland.
“These figures demonstrate that Scotland isn’t just renowned for its stunning landscapes and generations of heritage; we’re increasingly recognised for having one of the most vibrant and supportive business environments in the world,” said Neil.
“Over 2,000 international companies already call Scotland home – and these figures are a sign this number will keep increasing.
“Throw in excellent, stable infrastructure and an enviable quality of life, and you begin to understand why so many foreign companies made the decision to invest in Scotland last year.”
Neil’s thoughts on the growth of Scottish investment were confirmed by the Scottish Property Federation who reported that the commercial property industry in Scotland contributed £6bn to its economy in 2013 alone.
David Melhuish, Director of the Scottish Property Federation, added: “It is clear that attracting inward investment and funding is going to be an important part of Scotland’s economic landscape over the coming years, and although the commercial property market has already attracted significant overseas interest, we need to ensure that we have a competitive business environment to retain and build this investment.
“Keeping up with the new demands of modern business premises will also be vital to ensuring we continue to provide the accommodation business needs to grow and thrive.”
Neil concluded that companies investing in Scotland benefitted from not only one of the lowest tax rates in Europe but also the country’s great connections.
“Scotland is located on the doorstep of Europe, is well-connected to London, and the USA is just a short flight away,” said Neil.
“It’s this easy access to important markets that makes Scotland the ideal location to do business.”
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