Scotland’s market for £1 million-plus homes recorded more sales last year, led by continuing demand for family properties and well-presented country houses, according to a Savills report.
Among other reasons for this demand, the report cites the UK government’s decision to introduce VAT on private school fees.
Savills said buyers from London and the south of England are considering moving to Scotland to purchase prime properties at comparatively lower costs, enabling them to allocate more funds towards private school fees.
Other families already living in Scotland are choosing prime properties near good state schools over private education.
The report said Scotland’s top-end market has “shown resilience” despite ongoing political and taxation challenges.
At 466 sales, there were 12 more recorded residential transactions of £1 million-plus houses in 2024 than in 2023 — with total sales in this premium market reaching £675 million.
“Market strength since 2020 is a consequence of strong price growth, elevating more properties into the million pound price band,” said the report.
Cameron Ewer, head of residential sales Savills, Scotland, added: “Analysing the buyer profile in the million-pound plus sector reveals notable trends. Most buyers work in professional and financial services, with 75% already residing in Scotland.
“The remainder come from the UK and further afield, with London and the South East, Austria, Australia, USA, Singapore, and Hong Kong being among the top locations last year.
“The VAT change on private school fees is impacting property buying decisions. Buyers from London and the South are considering moving to Scotland to purchase prime properties at lower costs, enabling them to allocate more funds towards private school fees.
“Meanwhile, other families within Scotland are choosing prime properties near high-quality state education over private schooling. This trend is reflected in the increase in million-pound sales in key prime hotspots.
“Demand for country houses, particularly in areas such as St Andrews and Gleneagles remains strong, but running costs like maintenance and heating are becoming significant factors in purchases of larger country houses everywhere, even at the top end of the market.”
Strong demand for family homes supported a 13% rise in Edinburgh’s million pound-plus transactions last year, led by the inner suburbs of Grange, Morningside and Merchiston.
Notable sales included five on Braid Road, underscoring the desire for proximity to local services and green areas. Elsewhere, activity recovered in Edinburgh’s New Town, Stockbridge, Inverleith, Trinity, Ravelston, Barnton and Cramond. Inverleith Place, Ravelston Dykes and Whitehouse Road were the most popular thoroughfares, recording 13 sales between them.
Outside Edinburgh, the million pound market in the Lothians was led by the coastal hotspots of Archerfield, Gullane and North Berwick.
Constrained supply has impacted top-end activity in Glasgow and its surrounding areas. However, Bearsden saw an uptick last year, with Kilmacolm witnessing a record five transactions.
Meanwhile, million pound sales were level in the West End’s Dowanhill, the Park District and Lenzie in the suburbs. Continued demand for waterfront properties supported the top-end market along the west coast in Argyll and Ayrshire, with the majority taking place in Ayr, Helensburgh and the Loch Lomond area.
Scotland’s “heartland” also saw an increase in million pound sales last year, led by St Andrews and Elie in Fife, Gleneagles in Perthshire and Dunblane and Bridge of Allan in Stirlingshire.
In the north east, the Aberdeen area witnessed its strongest million pound market in two years, led by Bieldside, Milltimber and Rubislaw Den in Aberdeen City and Banchory in Aberdeenshire.
Whilst three transactions each in Melrose and West Linton supported a steady million pound market in the Borders last year, Highland saw a dip. Here, there is a shortage of good quality homes to supply the ongoing demand for a rural lifestyle.
“Looking forward, more buyers registering with Savills last year to purchase a prime property provides cause for optimism,” said the report.
“But the year ahead is not without its risks, given increased taxation for additional homes.
“That said, Scotland’s million pound market will be underpinned by demand for family homes in commutable areas and country homes with a high level of specification within reach of the main cities. However, setting realistic asking prices will be essential.”