Newsroom

Scots sales data reflects a ‘flatlining economy’

Commercial property sales – considered a bellwether for the Scottish economy - continue to scrape along the bottom, data published today reveals.

Quarter two commercial property sales data published by the Scottish Property Federation⁽¹⁾ (SPF) shows transactions in 2011 are on course for the lowest level at any point during the recession.

Just £489m was transacted in the second quarter of this year against an average of over £600m per quarter throughout the depths of the recession. The traditional heartland of Scottish commercial property, Edinburgh and Glasgow, now represents close to 50% of sales by value, with purchasers increasingly unwilling to look beyond these prime locations.

The Scottish Property Federation has told MSPs their primary focus must be getting the Scottish economy growing, and it should consider utilising new powers such as enhanced

borrowing when the Scotland Bill comes into effect in the autumn and the existing ability to amend business rates.

David Melhuish, director of the Scottish Property Federation, said: “The story is one of continued depressed commercial property sales across Scotland, reflecting a flatlining

economy. The industry is producing perhaps a third of its former contribution to the economy and tax revenues. 

“Getting the Scottish economy growing and creating jobs must be the central issue for the re-elected government, and it should consider making effective use of powers available to them when the Scotland Bill comes to pass.

“For example the enhanced borrowing powers could be used for infrastructure investment to drive the economy forward.

“If Scotland is pinning its hopes on a private sector led economic recovery it must create the conditions that allow this to happen.”

ENDs

For more information or to organise an interview please contact:

Paul Sweeney, Media Officer, Scottish Property Federation, psweeney@bpf.org.uk  – 07841 732194

David Melhuish, Director, Scottish Property Federation, dmelhuish@bpf.org.uk – 07841 080989

Notes to editors

1.      Data collected by the Registers of Scotland

2.      Data covers all sales of commercial properties, where applications are received for registration with Registers of Scotland in the period

3.      The data includes both cash sales and properties bought with a mortgage. The analysis includes single sales of blocks of properties to a commercial company

4.      Data will not include major one off shopping centre transactions whereby a company might have been transacted as much as a property