Brokers debate the impact of the English influx on their market
While London is known for its high property prices and a high cost-of-living, how many of those struggling to get on to the property ladder or move home in the capital would consider relocating more than 400 miles north to Scotland to do so?
Well, quite a few, it seems, are being drawn away from London in search of a more financially accessible lifestyle in the leading cities of Edinburgh and Glasgow. It might not be quite the distance made famous in Scottish band The Proclaimers’ anthemic hit song, I’m Gonna Be (500 Miles), but it’s still quite an extraordinary commitment to finding a home of your own.
Edinburgh and Glasgow appear in the top five of cities where Londoners moved in 2024, it’s reported by the home moving platform, Compare My Move. Relocations to both cities outnumbered moves to Brighton, Reading, Milton Keynes, and Birmingham, which are, of course, much closer to the capital. Given that average house prices in London are £683,929, compared to £338,307 in Edinburgh, £229,959 in Glasgow, and £366,592 in the United Kingdom, according to the report, it maybe shouldn’t come as a surprise.
But how is this trend impacting mortgage brokers in Scotland – and how are those moving to the area being received by true Scots?
Neil Renwick (pictured left), a senior mortgage adviser with Scotland-based CARA Mortgage Services, which has an office in Glasgow, suggests that those moving from England can benefit from the knowledge of advisers on the ground, and in turn, the business enjoys a boost too. “Given the difference in the house buying process north of the border, having a broker who understands both processes can be really beneficial,” Renwick said. “Helping these clients, who really need the advice of a local expert, is good for business. We tend to deal with a wide range of client types and circumstances but anything that adds to the mix of clients we see is always welcome.”
Renwick acknowledges, though, that an influx of buyers from England can be a mixed blessing for the market. “It is creating more competition for properties which is, on balance, a good thing,” he explained, “but it can make it more difficult for residents of Edinburgh and Glasgow to move up the housing ladder when they are bidding against Londoners who are perhaps more cash rich after selling their London properties.”
Most local people are quite patient though, it seems, with this trend of English incomers. “Generally they are quite accepting of it,” Renwick said. “Edinburgh and Glasgow have always been popular places to relocate and are welcoming to newcomers and tourists alike. However, you can sense the frustration with some clients who have been out bid on a few properties, but it’s the nature of the game unfortunately.”
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What is the impact on Scottish housing prices?
Broker Helen MacKenzie (pictured right), owner of MacKenzie Mortgages, has advised English buyers who are making the move north of the border, but she feels some concern about the impact this trend may have on the local market and those trying to get on to the property ladder in her native Scotland. “What I do know about property being sold to buyers from England, is that they can drive up the house prices in Scotland and therefore prevent people living here already to purchase property at a more affordable price, in line with the incomes people receive here,” MacKenzie told Mortgage Introducer. “In more rural areas, like the Highlands, there can be a lack of housing in some areas due to the influx of others from other parts of the UK, which has created difficulty for people already living in the area wishing to buy.”
She continued: “Cash buyers are common. The Highlands have experienced this for a few years and Edinburgh, too, which are very popular tourist areas also. I have helped buyers from England move to Scotland and from what customers and others tell me, they move to find a better quality of life.”
MacKenzie is a three times winner, and CARA is a multiple winner of both regional and overall awards at The Scottish Mortgage Awards, which will also be drawing people from across the UK to Edinburgh on Thursday, June 19. Scores of mortgage professionals will attend the prestigious awards ceremony at the Sheraton Grand. To find out more, go to: Scottish Mortgage Awards
Mark Dyason, founder of Thistle Finance, commented: “We have seen clients take advantage of the remote working and Zoom/Teams working environments to relocate to Edinburgh. It takes advantage of a vibrant financial sector here, coupled to a city with plenty to attract people looking for the benefits of a capital without some of the compromises that London requires. Transport isn’t an issue with many flights daily to all of the London airports and a great train service down the east coast.
“It is keeping a market moving that has slowed down over the last year and there has always been an influx of English Buyers - guilty! - so it isn’t something that causes any issue. Edinburgh has a rich mix of residents and tourists.” He added: “If there is any compromise, it is the strong prices for the city’s housing, a boon if you are on the ladder, a challenge for those trying to take the first or next step.”
