There has been an increase in demand for properties in commuter locations throughout Scotland which is boosting the entire housing market in the country according to reports.

The prime real estate market in Scotland is expected to grow by around 19% in the next five years, with suburban properties expected to significantly increase in value. Such properties had struggled due to the demand for city centre living with the Land and Buildings Transaction Tax (LBTT) also proving to be a constraint for properties based in commuter areas. Studies had previously found that many properties in such areas valued between £400,000 and £1 million struggled to recover from the housing crisis and the new LBTT tax.

Growth in Demand for Suburban Properties

While areas such as Stockbridge, Morningside and New Town in Edinburgh have enjoyed a boom in values in the last few years, outlying areas have struggled to grow at the same pace with many people wanting to live in the city centre. However, commuter properties have seen a surge in demand according to a report which could result in significantly higher valued prime properties. Areas such as Liberton in Edinburgh are expected to benefit from this new trend.

While property values in Edinburgh and throughout the UK are expected to rise, it is commuter areas that are expected to have the biggest growth. Prices to commute and lower fuel prices have been cited by some experts as one of the major reasons for the decline in the number of people wanting to live in the city centre, with the cost of living in commuter areas now being significantly cheaper.

Faisal Choudhry, director of Scottish research as Savills, the group who carried out the report said: "‘While Scotland continues to attract overseas buyers, we are now seeing the return of wealthy home grown buyers, and there were some important trophy country house and estate sales during 2015.

"However, one of the most important factors in the Scottish market is the fact that the recovery, which began in prime city locations, is finally established in the suburbs and is beginning to reach more outlying locations.

"Our latest data reveals today’s house buyers are falling back in love with the Scottish suburbs. This may partially be explained by a dwindling supply of the best homes available to buy in the most sought-after city centre locations."

Increase in Demand for Property

Other studies into real estate showed that Edinburgh had the highest value of assets and led the way with sales in Scotland, with the area being the most in-demand and popular. Indeed, according to some, the demand for property in the Capital was one of the major driving forces behind the surge in value across the country.

The news regarding the increase in demand for property and rural property in urban areas comes following the signing off of 6,000 new homes to be built in Edinburgh. The further expansion of the property market in the city comes despite the Local Development Plan in Edinburgh not being completed. With more properties in the area being developed, many have predicted the price of property to rise further.

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