Landmark residential property trends report Q3 ‘24 – October 2024 originally published by Landmark Information Group

What makes the Scottish property transaction process more effective than our counterparts in England & Wales. 

Landmark’s Property Trends Report for Q3 2024 is now live, providing an in-depth analysis of developments in the residential sector. Richard Hepburn, Managing Director of Millar & Bryce, explores the current market trends presented in Landmark Information Groups’ Q3 property trends report.

In our latest quarterly Property Trends Report from parent company, Landmark Information Group, presenting July-September 2024 data on listings, Sold Subject to Missives, completions and registered sales, Scotland’s figures offer a valuable perspective in comparison to the rest of the UK. Completions were down just 13% in Q3 2024 vs Q3 2019 (the last ‘normal’ pre-Covid benchmark year), which contrasts sharply with England and Wales – where completion volumes were down 42% – indicating that Scotland’s streamlined transaction process working more efficiently. 

So why are property transactions more likely to be successful in Scotland?

Devolved matters; Scottish Parliament

Across the UK, the uncertainty over mortgage rates and the new Labour Government kept the brakes on the residential market. In Scotland, as land and property related matters are devolved to the Scottish Government, the implications from ongoing political unrest have had less of an impact.

Richard says, “Whilst some sellers and buyers in Scotland might have been holding off to see what beneficial changes the new UK Government will make the fact that some key levers in the property space are controlled by the Scottish Government (transaction taxes, first-time buyer incentives) means, we may not see the same profile of activity going forward.”

As prospective buyers paused ahead of the Budget in the hope of more favourable interest rates, residential listings remained high, and the presence of sub-4% interest mortgage deals started to create more seller and buyer confidence.

Continuing, Richard commented, “One other factor in the mix is the first new Labour Government Budget. Down South, there has been the sense that some buyers have held off to see if there are any property tax changes to come before acting. This might have lesser impact on us with property taxes set locally by the Scottish Government. The SDLT changes from Spring 2025 in England & Wales announced in the 30th October budget won’t impact Scottish buyers but it remains to be seen what changes the Scottish Government might announce in the 4th December Scottish budget.”

While the expected November 0.25% base rate interest rate cut to 4.75% has gone ahead, uncertainty remains with major UK lenders increasing mortgage rates and predictions that these will remain at this raised level for some time on the back of , with some measures in the October 30 budget .

Home Report

Earlier this year, Richard commented on the ‘dynamic’ of Scotland’s transaction end-to-end pipeline and market that allowed a more efficient transaction process with quicker turnaround times.

In Scotland, we have the well-established Home Report at the beginning of every listing process, mandatory under Scottish Government requirements. This also satisfies many of the up-front information requirements under the National Trading Standards Material Information rules that came into force in the Autumn of 2023. Their ask is simply to ensure that sufficient transparency is given on all ‘material information’ to prospective purchasers right at the start, avoiding them wasting time and money in considering a property that may not be suitable for them. These extend to items not typically included in the Home Report currently such as flooding, property rights (ie. access) and impact of coal mining. Flooding is a good example of a forward-looking risk which is not covered off in the current transaction process in Scotland but may in the future be impacted by the effects of climate change for example.

Richard continues: “To further compliment the current Home Report, Landmark Scotland has developed a Supplementary Report with the aims to further close the gap in satisfying the Material Information requirements, providing the additional, property specific, information needed to comply with parts B & C of the rules”.

Whilst overall we don’t have the same transaction delays as in England and Wales, with the Home Report already recognised by National Trading Standards as being pretty close to the levels of up-front transparency they require, this supplementary information completes the picture.

Q4 Insights

Richard commented, “As economic factors continuing to stabilise and Scotland’s efficiencies in home buying and selling make for a more streamlined transaction process – the outlook for Q4 and into 2025 is looking more positive. A healthy residential property market is a proven factor in improving the economy overall.”

Download our report

For more in-depth insights, check out our Q3 2024 Residential Property Trends report today.

The Land Register and the Sasine Register are the two systems for recording property ownership in Scotland. They play a vital role in the country’s property law and conveyancing processes.

Searches of these registers are an essential part of conveyancing, and no property transaction can safely settle without them. Property titles in Scotland fall into one of three categories:

1. The Land Register of Scotland under the 2012 Act (2012 Act Titles)
2. The Land Register of Scotland under the Land Registration (Scotland) Act 1979 (1979 Act Titles)
3. The General Register of Sasines (Sasine Titles)

Article originally published by Landmark Information Group.

Climate change is no longer a ‘next generation’ threat; it’s on our doorstep impacting many different aspects of our lives, not least within the property sector.

Buildings are a major contributor to greenhouse gas emissions, and the effects of climate change are posing considerable risks to property values and future habitability. It is now undeniable that our sector needs to adapt.

To understand how the property industry is starting to adapt, Landmark conducted comprehensive market research of 150 senior level employees working in estate agency, residential conveyancing, and mortgage lending across England, Scotland and Wales. Our findings have helped us gauge the growing commitment towards sustainability, and how we can help support and nurture this further.

The consensus from the industry

Our report, “Climate change in the property sector: a cross-market perspective,” takes a thorough dive into the findings:

Growing concern

Climate change is no longer a distant threat. A significant majority of property professionals (72%) recognise the urgent need to address its impacts. This growing awareness is driving a shift towards sustainable practices within the industry.

Client awareness

Property professionals said that clients are increasingly concerned about the potential effects of climate change on their property purchases. Flooding (60%), energy efficiency (58%), and local planning (56%) are among the top priorities for homebuyers. As climate risks become more apparent, these concerns are influencing decision-making processes.

Shifting practices

The property industry is adapting to the changing climate, and more professionals are actively advising clients. For example, mortgage lenders are, on average, advising 48% of their clients on potential climate change risks to their property, a similar number can also be seen from estate agents (49%).

Room for improvement

While the industry is making progress, there is still room for improvement. Less than 60% of conveyancing firms are currently on track to meet carbon emission targets. This highlights the need for continued efforts to reduce the industry’s environmental impact.

Encouragingly, more businesses have created net zero strategies (76%, up from 52% in 2023). Conveyancers have made significant progress, with 48% having published their own strategies. This is a demonstrable sign at just how much positive momentum towards solutions the industry is taking when it comes to the fight against climate change.

Download our report

To gain a deeper understanding of the trends and insights from our research, download your copy of ‘Climate change in the property sector: a cross-market perspective‘ here;

As of April 2024, the number of open cases in the Registers of Scotland’s backlog exceeds 119,000, with the oldest case dating back to January 2018.

While homeowners are not restricted from selling, remortgaging or making changes to their land or property title whilst the application is open, it can create unnecessary additional time, effort and sometimes costs for solicitors.

More worryingly we have recently seen a number of occasions where standard securities that were recorded in the Sasine Register have not been discharged as part of the First Registration and solicitors acting in any subsequent transactions are not aware of their existence when following normal practices, until the application makes it out of the backlog!

Once a property moves to the Land Register, there is no need (in theory) to look at the Sasine Register. A Legal Report for a property that has left the Sasine Register will only report on the Land Register title or pending application(s). If the parties acting in the first registration have failed to satisfy their obligation to discharge an outstanding standard security, then this won’t be apparent in normal practice.

We can help mitigate the risk of the above situation. If a property is undergoing first registration, we can send the legal report as normal. However we can also make you aware and arrange an unregistered legal report. We can examine the evidence of the original, identify the sasine search sheet and provide an unregistered legal report over the sasine title(s) making sure there are no surprises when you receive your completed title sheet.

At Millar & Bryce we’re here to help, as well as being experts on searches, we understand your requirements for conveyancing and registration and provide pro active solutions to mitigate risks in transactions.

If you’d like further details, then please contact your Account Manager or email us at relationship@millar-bryce.com

This week is Scottish Apprenticeship Week (4 to 8 March) and to celebrate we’d like to shine a light on the important and valuable role our apprentices play here at Millar & Bryce.

Skills Generation is this year’s theme of the week, and we are proud to join around the 12,000 apprentice employers in Scotland, supporting the new generation of Scotland’s skilled workforce, for now and in the future.

Darren Mossman, Senior Regional HR & Facilities Manager, comments: “Investing in our people is critical to the future of our business and through our continued investment in Modern and Graduate apprenticeships has ensured our employees are able to build necessary skills to support them in their role but also our clients. Apprenticeships provide a crucial bridge between education and employment, offering employees valuable hands-on experience, industry recognised qualifications and a pathway to sustainable careers, they massively contribute to building a skilled workforce for the future.”

At Millar & Bryce we offer both a Modern and Graduate Apprenticeship. Darren continues, “Millar & Bryce have been supporting Modern Apprenticeships for many years and more recently have partnered with Scotia Law Training who deliver the Modern Apprenticeship in Paralegal Practice. In addition we have expanded into Graduate Apprenticeships and have employees studying a Graduate Apprenticeship at Robert Gordon University which will see them achieve an honours degree in Business Management after four years.”

Leona Ferguson, Operations Team Manager, now in year two of a four-year Graduate Apprenticeship in Business Management comments, “Undertaking a Graduate Apprenticeship in Business Management has given opportunities to combine academic knowledge with practical skills and applying these in real time in the business. It’s been reinforcing some of the skills and knowledge I already had whilst enhancing my “toolbox” with new learnings, boosting my confidence in my ability. I’ve had opportunities to connect with other leaders in group and learn from their experiences and included my team in these to help grow their knowledge and experiences too. This has brought about efficiency ideas and new customer experience suggestions.

It isn’t always easy juggling work, studying and life, especially if you have been out of formal education for a few years, however, there is lots of support from Robert Gordon University (RGU) and the business which helps make it a little easier. If anyone was to consider this route, then my advice would be “go for it”! You aren’t going to lose anything so it’s a win, win!”

Beth Farquhar, Operations Support Coordinator, entering year two of the Graduate Apprenticeship in Business Management comments, “My manager offered the Graduate Apprenticeship in Business Management at RGU for all the hard work and the potential she saw in me. I was worried I would be quite overwhelmed with the workload of a full-time course and a full-time job. Millar & Bryce have been amazing though. They have given me time to focus on my university work and I think it’s the reason I am doing as well as I am, as I have had their support.

I’m almost finished with my first year – its flown by – and I’m really enjoying it overall. I’ve learnt I great deal so far and am feeling positive about it helping me progress in my career. I am looking forward to beginning my second year. I’ve also learnt so much about myself, so it’s been beneficial for me in many aspects. 

If you would like more information, please email careers@millar-bryce.com