Scottish property popular for private wealth investment

Those with private wealth are increasingly turning to Scottish real estate, it would seem, as new figures show a sharp rise in the purchase of houses worth £1 million.

The Bank of Scotland reveals a 36 per cent hike in the number of luxury properties sold during the first six months of the year has outpaced the expansion in total house sales over the same period, which grew by 20 per cent.

Private wealth investors may be returning to real estate as a way to ensure returns on their outlay, as falling prices could make such assets increasingly attractive for those seeking successful wealth management.

Martin Ellis, the Bank's housing economist, described the trend as "significant", adding: "There was a marked increase in Edinburgh's share of all million pound property sales in Scotland … with the capital accounting for 40 per cent of all such sales."

Last month the Halifax house prices index showed a 3.6 per cent drop in average values, a factor that could have lent weight to the current trend. ADNFCR-2318-ID-800155007-ADNFCR