London househunters turn to Scotland amid virus crisis

●Property agents report record levels of inquiries boosting recovery hopes

One of the country’s leading estate agents has reported a surge in interest from people in London looking to relocate to Scotland since the Covid-19 pandemic struck.

Savills said it witnessed a 71 per cent spike in the number of London buyers viewing properties in Scotland online in May, compared with the start of the year. It said that an increasing number of buyers were looking to up sticks to larger properties, with more options for home working and access to green space.

The surge in viewings has come in the lead-up to this week’s row over cross-border travel. First Minister Nicola Sturgeon has said she would not rule out 14-day quarantine measures for people crossing into Scotland from England if the move was supported by public health evidence.

The spike in property viewings was reported as Scotland’s housing market reopened this week after being effectively mothballed by lockdown.

Some estate agents have reported record levels of enquiries, bolstering confidence the market is line for a strong recovery.

However, efforts to restart the market will be hampered by ongoing restrictions which place strict limits

on the number of potential buyers who can view listed properties.

Sellers are being asked to follow extensive cleaning regimes in line with Scottish Government guidance, with some agents asking all prospective buyers to take along gloves and face coverings when visiting a property. Savills said there had been an “overwhelming desire” to return to business as usual throughout the lockdown period, and the Scottish housing market was reopening at a time when a “pent-up demand” was already outstripping supply.

Cameron Ewer, head of the company’s residential division in Scotland, said demand levels had been “boosted by a surge in interest from London”.

He said: “We have seen a 71 per cent rise in the number of London buyers viewing our properties located in Scotland in May, compared with the start of the year.

“Larger properties with home-working options, room for extended family and gardens and access to green space are proving to be particularly sought after.”

Carlwarden,apartneratbell Ingram’s Perth office, said the company’s residential property department showed “good levels of demand and activity” during the lockdown period.

Mr Warden said: “Our team dealt with over 200 enquiries since the end of March, with buyers and sellers making good use of virtual viewing platforms while travel and home visits were banned.

“In fact, one of our properties completed without a physical viewing. The new owner bought the property on the basis of a video filmed on the seller’s iphone.”

Elsewhere, Countrywide said it too had seen a “surge in pent-up buyer demand over recent weeks”, which it classed as an “encouraging sign” the market will “bounce back strongly”.

With estate agents facing a significant backlog of properties to be valued and marketed, let alone viewed, government guidancemeanstheamountof business completed is likely to be curbed.

Open house viewings are not permitted. All surfaces, such as door handles, must be cleaned before and after each viewing, with any towels disposed of safely or washed.

The government’s guidance also stipulates that physical viewings should only be conducted where people are seriously considering making an offer on, or renting, a property.

Mr Ewer said the online market appraisals and virtual viewings arranged during phase one of the Covid-19 lockdown would remain “important features” of the housing market, particularly for buyers who are shielding, are in the early stages of their property search, or would require to travel significant distances for a physical viewing.

Another leading estate agent, Strutt & Parker, is encouraging people use its online virtual viewing technology to help narrow down their property search.

According to Bank of Scotland, online mortgage application enquiries increased by 75 per cent last week, with new lending appointments also up 470 per cent on the previous seven days. It said the majority of those enquiries were from first-time buyers.

It comes as house prices in Scotland bucked a downward trend across the UK. Nationwide Building Society’s house price index found while annual growth across the UK ground to a halt in June, with property values down by 0.1 per cent year on year, Scotland saw a modest rise in values.

It was the strongest performing nation in the second quarter of the year, with annual price growth picking up by 4 per cent.

Nationwide’s chief economist Robert Gardner said: “The medium-term outlook for the housing market remains highly uncertain. Much will depend on the performance of the wider economy.”