Millionaires moving into Edinburgh: £1m plus property sales continue to soar

Edinburgh has overtaken London as the fastest-moving market for £1m properties in the UK as the number of millionaires buying seven-figure homes in the Capital continues to rise.

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Scottish law firm and estate agency Lindsays says it has already been involved in more than twice as many seven-figure transactions so far this year than it was in the whole of the previous two years combined.

The estate agent has been involved in 38 property transactions of £1m or over which is up from 16 during the whole of 2020 and 15 in the 14 months prior to that.

Partner and Head of Residential Property at Edinburgh-headquartered Lindsays, Andrew Diamond,.

The majority of these deals - whether the firm was acting for buyers or sellers - have been in Edinburgh. The competitiveness of the Capital’s market was highlighted through a recent £1m-plus sale in Morningside which attracted 11 offers and sold for almost 27 per cent over its valuation price.

As demand for million pound housing outstrips supply the Capital’s more affordable housing market is also experiencing a sharp increase in competition.

Last moth, the Edinburgh-based letting agent Umega was forced to take properties off the market to try and reduce the volume of requests having received more than 11,300 tenancy applications for their 170 available properties in August.

Director of Umega, Andy Whitmey said his agency was “overwhelmed” by the demand and warned the city could be heading towards a housing crisis.

The Scottish Association of Landlords (SAL) and the National Union of Students (NUS) have also raised concerns about Edinburgh’s housing market.

Speaking to the Evening News about the surge in popularity of £1m properties partner and head of residential property at Lindsays, Andrew Diamond said: “We have never been involved in as many deals for £1m-plus homes than we are now.

“Particularly in and around Edinburgh, that increase in the number of homes selling for £1m or more is something we have expected for some time, but the dynamics of the post-lockdown market have really accelerated that shift. Our numbers reflect the wider market.

“Changing working habits caused by the pandemic continue to shape much of the demand we’re seeing. We’re in a different market to 18 months ago. People are looking for extra rooms and outdoor space - somewhere they can commute to work from a few days a week.

“We are continuing to see sustained high demand across the board, with low interest rates and the fact that lenders are continuing to make money available undoubtedly helping keep the market strong.

“That demand has, in places, outstripped supply. This has increased competition and driven prices up. Most types of homes are still selling quickly, as has been the case since last summer.”

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