Economic Secretary, Andrew Griffith MP, hailed the crucial role Scotland plays in maintaining the UK’s position as a world leader in financial services as part of a speech given in Edinburgh today.
He also visited Scottish Widows following insurance industry reforms which could unlock over £100 billion of investment in UK infrastructure and green projects, including in Scotland.
Economic Secretary Andrew Griffith was in Edinburgh today, where he hailed the success of Scotland’s financial services sector and the strength of the Union.
Speaking at TheCityUK’s Annual Conference, the minister praised the energy and vitality of Edinburgh, the second biggest financial hub in the UK, with one seventh of Edinburgh’s workers – 50,000 people – employed by the sector.
Mr Griffith then visited life insurance and pensions firm, Scottish Widows, following reforms to regulation (Solvency II), which could unlock over £100 billion of investment in the UK over the next ten years, boosting infrastructure, green growth and Scottish jobs.
Economic Secretary to the Treasury, Andrew Griffith said: ““Scotland’s economy makes a crucial contribution to maintaining the UK’s position as a leading global hub for financial services – with Edinburgh and Glasgow the two largest clusters outside of the City of London.
“Our reforms to Solvency II have the potential to unlock over £100 billion of investment into the UK economy, including in Scotland – in things like infrastructure and sustainable energy.
“We are committed to maintaining the UK’s place as one of the most open and dynamic markets in the world – and will set out further plans for ambitious reform, in the coming weeks.”
Craig Thornton, Chief Investment Officer, Scottish Widows: “By working together the insurance industry, Government and the Prudential Regulation Authority will now be able to unlock a significant investment boost for the UK economy, while continuing to help people secure their financial futures.
“Scottish Widows has already invested around £3bn in social housing projects across the UK, however we will be able to invest billions more in projects which are vital to the growth of the economy and the transition to net zero.
“We’re looking forward to moving on to the next stage of the reform process at pace, which includes working with Government to accelerate the vital work of identifying suitable investment opportunities in the UK which will benefit from the recently announced changes.”
Solvency II is a set of regulations dictating how much financial reserves insurers have to hold against the risks included in their policies. It also dictates how they are required to report these risks to regulators.
The rules were implemented in 2016, and were a compromise between EU member states. Leaving the EU has enabled us to reform these rules to suit the unique features of the UK insurance market.
At the Autumn Statement, the Chancellor announced steps to reform the legislation that would unlock over £100 billion of investment in UK infrastructure, and drive down prices of life insurance products for consumers.
These included:
A 65% reduction in the risk margin for life insurers, and 30% reduction for general insurers. This will help free up capital on insurers balance sheets.
A significant increase in flexibility of the matching adjustment – freeing up money for long-term assets such as infrastructure.
A meaningful reduction in the current reporting and administrative burden on firms, such as doubling the thresholds at which the regime applies.
These steps act as a first course of the Government’s ambitious agenda to seize on our Brexit freedoms and reform our world leading financial services sector, so that it works in the interest of British people and consumers.
They also build on the measures within the Financial Services and Markets Bill – which grants the UK the power to repeal and replace hundreds of pieces of burdensome EU laws; protects access to cash for communities in Scotland; and compensate the victims of APP fraud.
Fresh uplift in permanent staff appointments, but growth only mild
Temp billings rise at quicker pace
Pay pressures ease, but remain historically sharp
Scotland’s labour market saw an improvement in overall hiring activity in September, according to the latest Royal Bank of Scotland Report on Jobs survey, with recruiters reporting a fresh rise in permanent placements and stronger temp billings growth.
The seasonally adjusted Permanent Placements Index rose back above the neutral 50.0 mark, rising from 47.3 in August to 52.7 in September, to signal a mild uplift in permanent staff appointments, while temp billings increased at a strong and accelerated rate.
At the same time, sustained growth of vacancies, combined with another deterioration in candidate availability, led to further upwards pressure on pay. Notably, both starting salaries and temp wages increased at historically sharp rates, despite easing since August.
Permanent placements return to growth
Adjusted for seasonal variation, the Permanent Placements Index rose back above the neutral level of 50.0 in September to signal a fresh rise in permanent staff appointments across Scotland. Panellists attributed the upturn to strong demand for staff and increased hiring activity amongst clients in some sectors. That said, the pace of increase was only mild.
September data pointed to sustained growth of temp billings across Scotland, extending the current sequence of upturn that began two years ago. The rate of expansion ticked up from August’s seven-month low and was solid overall.
The pace of increase in temp billings in Scotland was broadly in line with the trend seen for the UK as a whole.
Further marked drop in permanent candidate availability
The supply of permanent staff across Scotland continued to decrease in September, stretching the current sequence of contraction to 20 months. Skills shortages and high demand for staff reportedly drove the latest fall. Notably, the rate of decline quickened slightly on the month and was marked overall.
Scotland recorded a much sharper fall in permanent staff supply than that seen on average across the UK, with the pace of decline slowing slightly on the month at the national level.
Adjusted for seasonal variation, the Temporary Candidate Availability Index remained below the neutral 50.0 mark in September, signalling a nineteenth straight monthly deterioration in the supply of temp staff across Scotland and one that was rapid overall. Panellists cited strong demand for short-term workers and a reluctance among candidates to move roles. Although it remained much sharper than that seen at the national level, the pace of contraction was the slowest for six months.
Rate of starting salary inflation eases to 15-month low
September data signalled a sustained uplift in salaries awarded to permanent new joiners in Scotland, amid reports that strong demand for staff led to upwards pressure on pay. Though historically sharp, the rate of salary inflation was the slowest for 15 months, and weaker than that recorded for the UK as a whole.
A twenty-second monthly increase in hourly rates for short-term staff in Scotland was recorded in September. According to survey respondents, skills shortages were the primary cause of the latest rise. The rate of temp wage inflation softened to a four-month low, but was nonetheless sharp and outpaced the UK-wide average.
Permanent vacancies rise at slower rate
As has been the case in each month since February 2021, demand for permanent staff in Scotland increased in September. The rate of expansion was the softest seen for a year-and-a-half, albeit sharp by historical standards.
IT & Computing recorded the fastest rise in permanent vacancies, followed by Nursing/Medical/Care, while Hotel & Catering saw the slowest.
Temporary vacancies across Scotland continued to rise in September, extending the current sequence of growth to two years. The rate of increase was the slowest since February 2021, but still sharp overall.
Across the monitored sectors, demand for temp staff was strongest in IT & Computing, followed by Accounts & Financial.
Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Permanent staff appointments across Scotland rose during September following a moderate fall in August, amid reports of improved hiring activity at clients in some sectors and strong demand for workers.
“The rate of growth was only mild, but nonetheless outpaced the UK-wide average. Temp billings also increased, with growth ticking up since August to a solid pace.
“The imbalance between staff demand and supply continued to place upwards pressure on pay in September.
“The latest survey showed that both permanent and temporary staff availability continued to decline sharply, which drove further increases in temp pay and starting salaries at rates seldom seen in the history of the survey.”
11 Local Authorities in July experiencing record average prices
Argyll and Bute has highest annual growth rate at 18.1%
Semi-detached properties have highest price growth over the year
Average Scottish house price now £224,035, up 0.8% on June, 9.1 annually
Table 1. Average House Prices in Scotland for the period July 2021 – July 2022
Scott Jack, Regional Development Director at Walker Fraser Steele, comments: “The average price paid for a house in Scotland in July 2022 is £224,035, establishing yet another record price for the country – the thirteenth occasion that this has happened in the last thirteen months.
This price is some £18,600 higher than that seen in July 2021, indicating that prices have risen by 9.1% on an annual basis. This annual rate has slowed from the 10.6% growth seen in June, but that month was assisted by a near £3,000 fall in prices which occurred twelve months earlier in June 2021, meaning that the base point for measuring June’s growth rate started from a particularly low level. On a monthly basis, prices in July increased by some £1,725, or 0.8%, which was close to £500 higher than the increase seen in June – continuing the bi-monthly oscillation in prices in 2022 that can be seen in Table 1 above.
Figure 1. The average house price in Scotland over the period July 2020 to July 2022
While prices continue to increase, there is some evidence that the number of housing sales in Scotland is beginning to slow – although a number of surveyors in Scotland believe this to be a regular feature of June and July’s housing market, coinciding as it does with the school holidays, when families are likely to be distracted by matters other than buying a property. It is therefore difficult to draw conclusions from the observed shortfall of sales in June, and to a lesser extent July.
Looking at Table 2 below, which illustrates the change in prices by property type, there is a far smaller difference between the property types in July 2022 than there had been in March 2022.
March 2022 shows a ‘pandemic-led’ increase in prices with detached properties having the highest growth in prices, and flats the lowest. However, in July this position has changed, with semi-detached properties seeing the largest increase in prices while detached properties are second lowest.
The change in growth rates of the different property types highlighted in Table 2 may suggest that the importance of ‘lifestyle-changes’ in the decisions involved in buying a property have shifted over the last few months, as the pandemic becomes less of an influence on peoples’ lives. Or alternatively it may just reflect a change in the mix of those who have purchased properties during the school holidays. We will have to wait and see what happens when the schools return this autumn, and families contemplate their next move.
Transactions analysis
Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to July 2022, based on RoS (Registers of Scotland) figures for the Date of Entry. (July 2022 totals are based on RoS Application dates.)
It can be seen that the June 2022 total is the second lowest transaction count of the eight years shown in Figure 2, with only the June 2020 total being lower. (June 2020 was only three months after the start of the pandemic). Although the July 2022 total shows a small increase in transactions compared to June 2022, the current figure for the month remains an estimate, so at this stage not too much weight should be given to the predicted rise in sales.
RICS (Royal Institution of Chartered Surveyors), in its July 2022 Residential Market Survey, is pointing to an easing in sales market activity, with metrics on demand and sales remaining in modestly negative territory over the month. RICS add that for the time being at least – underpinned by the low levels of supply available for purchase – prices continue to rise across all parts of the UK.
Figure 2. The number of sales per month recorded by RoS based on entry date (RoS applications date for July 2022), for the period 2015 – 2022
Scotland transactions of £750k or higher
Table 3. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – July 2022
Table 3 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
Table 3 shows that there were 81 sales in excess of £750k during July 2022, and we anticipate that this number will increase as further sales for the month are processed by the Registers of Scotland. It is however doubtful that the July 2022 total will exceed the July 2021 total of 120 sales, which again suggests a slight cooling in the high-value sales market, consistent with the RICS Residential Market Survey quoted earlier. However, the total for July 2022 of 81 high-value sales still exceeds all the prior years’ July totals, except for 2021, indicating that the “lifestyle changes” associated with the pandemic – “working from home” and the “race for space” – are still features of the current housing market, even if their prominence is beginning to wane. This, as discussed on page 7, has resulted in strong competition for the properties that meet these requirements, with substantial price rises still being experienced at the top-end of the market.
A similar picture can be discerned from looking at the totals for the eight years covered by Table 3 above. It is clear that after seven months, the 2022 total already exceeds each full year from 2015 to 2018, with 2019 highly likely to be surpassed next month, and 2020 following suit shortly thereafter. It can also be seen that the sum of the first seven months of 2021 amounts to 590 sales, meaning that 2022 is not too far behind the previous year’s total at the same point in the year.
The five authorities with the largest number of the 578 high-value sales that have been recorded to date in 2022 are: Edinburgh (294); Glasgow City (37); Fife (32); East Lothian (28); and finally East Renfrewshire (20). From these figures can be seen that in 2022, Edinburgh accounts for just over half of this sector of the housing market
Local Authority Analysis
Table 4. Average House Prices in Scotland, by local authority area, comparing July 2021, June and July 2022
Table 4 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for July 2021, as well as for June and July 2022, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 4 is based on the local authority area’s average house price for July 2022. Local Authority areas shaded in blue experienced record average house prices in July 2022.
Annual change
The average house price in Scotland increased by some £18,600 – or 9.1% – over the last twelve months, to the end of July. This is a near £2,800 decrease over the £21,400 growth in prices seen in the twelve months to the end of June 2022 – but we were advising last month that prices in June 2021, i.e., one year earlier, had fallen by £3,000 from May 2021, so the base point for measuring annual changes in value was starting from a low level.
In July 2022, 31 of the 32 local authority areas in Scotland saw their average prices rise over the levels seen twelve months earlier – the sole exception being Inverclyde, where prices fell by -1.0. Inverclyde currently has the lowest average property value of the 32 local authority areas in Scotland, despite it having experienced a 7.4% increase in average prices in the month – discussed in more detail below.
The area with the highest annual increase in average house prices in July 2022 was Argyll and Bute, where values have risen by 18.1% over the year. This is the fourth month in succession that Argyll and Bute has recorded the highest annual change in prices, having been assisted in this process by a number of high-value sales achieving prices above their guide levels.
This occurred again in July, with the sale of a four-bedroom shipping magnate’s villa overlooking the Clyde, having an asking price of £650,000 but selling for £850,000. This is a classic example of how homes in attractive locations – this time in Helensburgh – can attract competitive bids, resulting in a significantly higher price for the property under offer.
In Table 4, it is noticeable that the top eight local authorities by value have all seen their average prices increase in the month, suggesting that the desire to move to larger properties in these areas has continued in Scotland over the summer months, despite the school holidays.
On a weight-adjusted basis, which employs both the change in prices and the number of transactions involved, there are five local authority areas in July that accounted for 44% of the £18,600 increase in Scotland’s average house price over the year. The five areas in descending order of influence are: – Edinburgh (13%), Glasgow (12%); South Lanarkshire (9%); Perth and Kinross (5%) and Highland (5%).
Monthly change
In July 2022, Scotland’s average house price in the month rose by some £1,730, or 0.8%, continuing the pattern of minor upward oscillations in property values on a monthly basis. The average price in Scotland now stands at £224,035, which sets a record level for the nation for the thirteenth month in succession.
In July 2022, 20 of the 32 Local Authority areas in Scotland experienced rising prices in the month, two more than in June. The largest increase in average prices in July, of 9.0%, was seen in Na h-Eileanan Siar, but we frequently make the point that the Islands have few sales in a month – in July there were just 12 in the Western Isles – which tends to result in large movements in average prices.
On the mainland, the highest increase in prices was in Inverclyde, up 7.4% in the month. Average prices in Inverclyde were assisted in the month by the purchase of an upmarket flat, in Greenock, being a lower conversion of a traditional 1870 Victorian blonde sandstone property, with 5 bedrooms, which sold for £370k – the second highest priced flat sold in Inverclyde in the calendar year.
At the other end of the scale the lowest increase in average prices in July, on the mainland, was Dundee City, at -3.7%. A number of new homes had been purchased in the Broughty Ferry area of Dundee earlier in the year – but the number sold diminished in July, resulting in the fall in average prices in the area.
Peak Prices
Each month, in Table 4 above, we highlight in light blue the local authority areas which have reached a new record in their average house prices. In July, there are 11 such authorities, two less than in June. We can also add that Scotland itself has set a record average price in July 2022 – the seventh of this calendar year.
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending July 2022. As reported above, 31 of the 32 local authority areas in Scotland have seen a rise in their average property values over the last year, the one exception being Inverclyde. The highest increase over the twelve months to July 2022 was in Argyll and Bute at 18.1%. 16 of the 32 local authority areas had price growth in excess of 10.0% – three less than in June 2022.
Comparisons with Scotland
Figure 3. Scotland house prices, compared with England and Wales, Wales, North East and North West for the period January 2005-July 2022
Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, Wales, North East and North West for the period January 2005–July 2022
Scotland’s Eight Cities
Figure 5. Average house prices for Scotland’s eight cities from May 2021–July 2022
Figure 6. Average house prices for Scotland’s eight cities July 2022
To ensure that children and families are at the centre of all we do, we create opportunities for families to participate in the development of policies, values, and services.
We believe that to properly support families to find their own solutions, it is necessary to give voice to their thoughts, concerns, and aspirations.
We’ve recently involved families in the creation of a new participation strategy for Circle.
This strategy creates a framework that recognises the need to involve families in a meaningful and respectful way in the development of services and policy across the organisation.
The Cubes of Perpetual Light will play new music commissions inspired by the themes of sustainability and growth during the Festival of Politics and Edinburgh International Book Festival
Specially designed ‘Cubes of Perpetual Light’ will come together in the Capital this summer to create a striking music installation featuring programmable light and quadraphonic sound.
The unique installation will appear in the iconic surroundings of the Parliament Garden in the Scottish Parliament, open to the public during the Festival of Politics, August 11-13 and Edinburgh International Culture Summit August 26-28.
A second installation will be installed during Edinburgh International Book Festival, 13–29 August.
The installation forms part of Dandelion, a major creative programme demonstrating the power of collective action through an ambitious ‘grow your own’ initiative that aims to reach communities across Scotland this summer.
Commissioned by EventScotland and funded by the Scottish Government, Dandelion is Scotland’s contribution to UNBOXED: Creativity in the UK.
At the centre of Dandelion, is a meeting of art and science through the creation of hundreds of unique miniature ‘growing cubes’, called the ‘Cubes of Perpetual Light’. The 1m x 1m cubes are designed to foster accelerated plant growing and have been developed to grow hundreds of seedlings under LED light, combining design craft, traditional horticultural expertise and technological innovation.
The Cubes aren’t just miniature growing laboratories however, they’re also the inspiration for new music which people are being invited to experience at festivals and venues across Scotland this summer, now arriving in Edinburgh.
The special installations are each unique, featuring a collection of cubes, with immersive lighting integrated with stunning quadraphonic speaker systems designed to best showcase the new music compositions playing ‘from’ the cubes. This is the only opportunity to hear these unique compositions in their entirety.
For those unable to visit the cube installations in Edinburgh, they will also be visiting Inverness Botanic Gardens, 15–29 August, and on display at V&A Dundee until 30 August. This activity forms part of a summer-long programme of art, music, food and science for everyone to enjoy.
Leading musicians from Scotland and beyond have created 13 new music commissions for the Cubes of Perpetual Light, all inspired by themes of nature and sustainability.
The aim of the commissions, which can only be heard at the installations, is to encourage listeners to think more deeply about how, where and why plants grow. Each new music piece is commissioned by Dandelion with additional support for international work from British Council Scotland.
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The Edinburgh installation includes 13 tracks of new music from artists:
amiina & Kathleen MacInnes: A gorgeous collaboration bridging the mighty North Atlantic, from the Outer Hebrides to Iceland. South Uist native Kathleen MacInnes, one of Scotland’s finest Gaelic folk singers comes together with amiina, from Reykjavik – a strings-and-electronica quartet whose packed portfolio includes many collaborations with Sigur Rós. This unique recording for Dandelion features Gaelic lullabies Crodh Chailein, Dhachaidh along with amiina composition blauwber’.
Arooj Aftab & Maeve Gilchrist: Arooj Aftab’s music is a breath-taking blend of Sufi mysticism, contemporary classical, jazz, ambient and much more – and this year, she became the first Pakistani woman to win a Grammy. Her stunning new album Vulture Prince features Edinburgh-born harper, composer and producer Maeve Gilchrist, and the pair are teaming up again to create new music for Dandelion.
Claire M Singer: Claire M Singer is an acclaimed Scottish composer and performer whose acoustic and electronic music draws inspiration from the dramatic landscapes of her native country. The Director of Organ Reframed, a festival of new music that reimagines the epic sound of the organ, she’s created a new multi-channel work featuring organs recorded in Aberdeenshire, Inverness, Stonehaven and Glasgow.
Vedanth Bharadwaj : Vedanth is a vocalist and composer born in Mumbai, India who trained in Classical music around the age of four, under Neyveli Santhanagopalan. He recorded two beautiful songs for Dandelion featuring himself on vocals, banjo and guitar along with Gurupriya Atreya on vocals. ‘Vrukshan Se Mati Le’ is a song written by Surdas (an Indian mystic poet from the 16th century). He writes about how one ought to learn compassion from trees. Trees neither love you more when you water them, nor do they hate you if you cut them down. It provides us shade, while bearing all the heat from the sun on its own head. If you throw a stone at it, it gives you a fruit! Lucky are we, to live in a world among trees. Surdas pleads to us to learn compassion from trees, or at least, from the indigenous people.
Craig Armstrong & Steve Jones: Craig Armstrong is a BAFTA, Golden Globe and Grammy-winning Scottish born composer. Through his orchestral writing, electronic music and wide-ranging artistic collaborations in classical and film music, Craig Armstrong’s distinct compositional voice has received worldwide acclaim. For Dandelion he created ‘Endless (Study 1)’ with guitarist Steve Jones along with School of Scottish Studies field recordings from the 1960s to create a sense of limitless space and time for the listener.
Fergus McCreadie: Fergus McCreadie is one of the UK’s most exciting jazz musicians. Combining vital jazz sounds with influences drawn from Scottish traditional music, his brilliant third album Forest Floor came out in April to universal acclaim and has been nominated for the Mercury Music Prize. His specially recorded Dandelion work ‘Life Cycle’ features piano and strings from Seonaid Aitken, Emma Pantel, Sarah Leonard & Juliette Lemoine.
Jason Singh: Jason Singh is a remarkable sound artist, beatboxer, producer and performer whose music is inspired by the natural world. Nicknamed “The Human Sampler” by Cerys Matthews, he’s worked with everyone from Sir David Attenborough to Talvin Singh. His composition for Dandelion, Droop, is a lament in response to our climate crisis. It is a collaboration between plant, humans and technology and has been created by converting the electrical signals generated by the Camellia plant into musical notes played through analogue and digital synthesisers.
Maya Youssef: Syria’s Maya Youssef is the ‘Queen of the Qanun’, an extraordinary 78-stringed Middle Eastern plucked zither. Her life-affirming music is rooted in the Arabic classical tradition but forges into jazz, Western classical and Latin music – as heard at the BBC Proms, WOMAD and now here on this special work for Dandelion: Back to Earth, Barley Blessing & Eastern Wind featuring Maya with Scottish musicians Innes White, Catriona Price, Craig Baxter, Alice Allen, Ciorstaidh Beaton and Arabic Nay player Moslem Rahal
Ravi Bandhu: Hailing from Sri Lanka, this acclaimed drummer, dancer and choreographer has taken his magnificent drum ensemble to stages as far afield as WOMAD in Reading and the Kennedy Center for the Performing Arts in Washington, DC.
Trio Da Kali: In a unique African / Scots collaboration Trio Da Kali brings together Hawa Kassé Mady Diabaté, Lassana Diabaté and Mamadou Kouyaté – three of the best new griot musicians from the Mandé culture of Mali – along with award winning Scots vocalist Kim Carnie & piper Ross Ainslie – to bring a fresh creative vibe to ancient traditions. These songs continue with the long-time folk culture of telling old stories from the past that pay tribute to the people who do good things for the community and talk about the importance of living in the present and enjoying what happens now.
Brian d’Souza: An award-winning sound artist aka Auntie Flo, DJ, producer and performer from Glasgow via Goa, Brian makes magic from a blend of electronic sounds and influences from around the globe. Winner of the 2019 Scottish Album of the Year Award for Radio Highlife, he recently debuted immersive installation The Soniferous Forest and for Dandelion has composed ’Spring Symphony (Sage, Basil, Mint and Lavender)’ – a biophilic soundscape that harnesses the power of nature through sound. It was created by using a Plant Wave device to pick up electromagnetic activity from the different plants which translated each into MIDI notes. These notes then literally ‘played’ samples of various traditional instruments from the Hebrides – including Clarsarch, Whistle, Flute, Pipes and Fiddle.”I then let the plants play… totally naturally to produce a kind of ‘acoustic ecology”.
Manu Delago: There’s no sound in music quite like the hang, a melodic percussion instrument invented only 20 years ago – and there’s no better exponent of it than Manu Delago, who’s performed with the likes of Björk, the Cinematic Orchestra, Ólafur Arnalds, Nitin Sawhney and Anoushka Shankar while making a succession of brilliant solo records.
Pàdruig Morrison: Accordionist Pàdruig Morrison was brought up surrounded by the culture, the music and the language of the Gaels. After bedding in the first Cube of Perpetual Light on the remote Hebridean island of Heisgeir, where his grandparents set up a pioneering experiment in sustainable living, Pàdruig is now making new music to help them grow.
This follows Dandelion’s latest project taking the Cubes of Perpetual Light on tour across Scotland throughout the month of August, traveling on specially designed electric cargo bikes.
The tour visits schools, parks, venues and Dandelion Unexpected Gardens where the commissioned music can be heard.
Music Director for Dandelion, Donald Shaw said: “Just as plants can grow from tiny seeds, great music can grow from small ideas that we nourish till they bloom into full art forms.
“The cubes can demonstrate accelerated growing in a wide range of settings, both the expected and unexpected. Placed in a particular environment they create a micro-world within a world, allowing musicians and listeners to imagine a sonic landscape that surrounds us, providing a space for contemplation and for us to imagine a future where we sow, grow and share differently.”
The Rt Hon Alison Johnstone MSP, Presiding Officer of the Scottish Parliament said:“The Festival of Politics is all about opening the doors of the Scottish Parliament to people across the country with a variety of things on offer – from debate and discussion to exhibitions and music.
“The cubes of perpetual light is an example of how sustainability and art can come together to grab people’s attention and make people stop and think. I hope many people will take the opportunity to join us.”
Marie Christie, Head of Development, Events Industry at VisitScotland said:“It’s fantastic to see so many incredible artists create new music inspired by Dandelion’s urgent themes of sustainability and our connection to the natural world.
“By fusing new music and new technologies, the cubes create unique ways for audiences to engage and connect with these issues. It’s wonderful to see the cubes travel to Edinburgh to be part of the city’s world-leading festivals, where audiences from Scotland and all over the world can experience them.”
Martin Green, Chief Creative Officer, UNBOXED said: “Dandelion is a brilliant coming together of artists, designers, technologists and scientists to make something special and important about what we eat, how it grows and how everyone can get involved in growing, wherever they live.
“Through the growing cubes, music and many opportunities to participate in growing initiatives, Dandelion is designed to inspire people to create a sustainable future. Dandelion is one of five UNBOXED projects taking place in Scotland this year as part UNBOXED: Creativity in the UK – a year-long celebration of creativity across the four nations.”
Dandelion is a joyous Scotland-wide celebration of sowing, growing and sharing. Commissioned by EventScotland and funded by the Scottish Government it is part of UNBOXED: Creativity in the UK. Dandelion reimagines our relationship with food and the planet and the way we celebrate it together.
Average wealth has increased by 59% in the past decade while earnings have grown just 19%
Even among the wealthiest the value of assets has grown by 64% compared with 20% for salaries
The growth in average wealth from assets including property and investments has been three times higher than the growth in average earnings over the past decade, new analysis* from Handelsbanken Wealth & Asset Management shows.
Figures show people are being out-earned by their homes and other investments, with average wealth rising 59% over the past decade compared with 19% growth in salaries over the same period, according to Handelsbanken Wealth Management & Asset Management’s analysis of the latest Government data on Britons’ wealth and assets and earnings.
Average wealth for Britons is estimated at £575,948 after a decade of growth from £361,831, with house price rises as well as increases in pensions, investments and physical wealth including possessions all appreciating in value since 2010. By contrast, average earnings have only increased to £31,840.
For the wealthiest 25% of the population, the growth in assets has been even more impressive – they now own wealth estimated at £733,800 compared with £447,900 a decade ago. They have seen their wealth increase 34% faster than the British average, while their salaries have increased 22% faster.
Of course, the growth in wealth has not been shared equally throughout the country – the wealthiest people in London have seen their wealth grow by 77% over the period to an average £902,400, compared with £495,200 in 2010.
The top 25% wealthiest in the North East have only seen growth of 30% during the same period, taking them to an average £459,500, which equates to an increase of £105,300. Growth among the top quartile of wealthiest people in the South East was 77% during the same period, compared with 69% in the East of England and 66% in the South and Wales. The North West saw growth of 45%.
PK Patel, Head of Wealth Management at Handelsbanken Wealth & Asset Management, said: “Earnings growth has on average been constrained over the past 10 years, with most people relying on their houses, investments, and possessions to boost their wealth.
“It is fascinating to see the gulf between the increase in asset values and the increase in average earnings over the past decade, and is instructive for advisers and their clients on how to plan their finances and assess their wealth.
“No matter how your total wealth is made up, it’s important to have a clear plan on how you want to use it for your own future and for the benefit of other family members.”
Table one: wealth and salary growth for the richest quartile by UK region, 2008-10 vs 2018-20
Region
Top quartile average wealth
Top quartile average salary
2008-10
2018-20
Growth
2010
2020
Growth
North East
£354,200
£459,500
30%
27736.5
£33,108
19%
North West
£387,400
£561,400
45%
29272
£35,256
20%
Yorkshire & the Humber
£376,300
£556,300
48%
28591.5
£33,890
19%
East Midlands
£415,500
£617,900
49%
29442
£35,204
20%
West Midlands
£399,200
£621,500
56%
28654.5
£35,003
22%
East of England
£511,500
£864,700
69%
33006.5
£38,938
18%
London
£495,200
£902,400
82%
39157.5
£47,423
21%
South East
£597,100
£1,058,000
77%
34775.5
£40,834
17%
South West
£485,300
£805,500
66%
28887
£34,434
19%
Wales
£383,900
£635,700
66%
27845.5
£33,453
20%
Scotland
£364,000
£584,800
61%
30072.5
£36,889
23%
Great Britain
£447,900
£733,800
64%
31401
£37,625
20%
Table two: average wealth and salary growth by UK region, 2008-10 vs 2018-20
Innovators to share in £150K prize fund and other business growth support measures
A host of University of Edinburgh students and alumni who have founded their own startup companies are celebrating after taking honours at this year’s Scottish EDGE Awards.
Xiaoyan Ma, founder of Danu Robotics, an innovative business focused on developing sustainable technological solutions for the benefit of the environment, was named among this year’s main award winners. The company secures £75K in grant funding to accompany its award.
Three other company founders, which have also been supported by Edinburgh Innovations (EI), the University’s commercialisation service, were named as Young EDGE winners. They include Alex Hodson of Podspectrix; Niall McGrath of Robocean; and Elena Höge of Yaldi Games.
Meanwhile Ioannis Stasinopoulos of Prozymi Biolabs, a further EI-supported startup, was named as a Wildcard EDGE award winner. Between them, the four companies will share a further £45K in grant funding along with their awards.
The annual Scottish EDGE Awards, aimed at identifying and supporting Scotland’s up-and-coming, innovative, high-growth entrepreneurial talent, recognises and supports entrepreneurs and startup businesses.
Funded by the Hunter Foundation, the Royal Bank of Scotland, the Scottish Government, Scottish Enterprise and private donors, the competition is delivered twice annually and has to date supported 395 early-stage Scottish businesses with over £15m in award funding.
The winners from this year’s Scottish EDGE Awards will share in more than £150K ingrants and benefit from other forms of support and mentoring to help them maximise their growth aspirations.
John Lonsdale, Head of Enterprise Services from Edinburgh Innovations said:“We congratulate all the University of Edinburgh students and alumni in their success at this year’s Scottish EDGE Awards.
“We are delighted to have supported these emerging companies, all of which are focused on developing innovative solutions to some of the key challenges facing society.
“As an organisation committed to helping University of Edinburgh startups reach their full potential, Edinburgh Innovations is proud of its role in supporting entrepreneurs who are driving economic growth in Scotland and beyond.”
World’s oldest remaining building society sees major growth in savings and mortgages
Scottish Building Society, the world’s oldest remaining building society, has posted record results for the financial year ended 31 January 2022.
Established in 1848, the mutual has seen its balance sheet grow by nearly 40% in the last 2 years, leading to a pre-tax profit of £2.4m and mortgage assets of £454m.
The Society, which only offers savings and mortgage accounts, ascribed the growth to customers seeking both value and purpose when joining SBS.
The Society’s Chief Executive, Paul Denton said: “We are as committed to our wider purpose today, as we were back in 1848. As a mutual society, we reward our members with fair interest rates whilst responsibly using those funds to provide flexible mortgages, enabling Scottish people to buy homes and get on the property ladder.
“The environment has changed over the years, but that simple strategy has helped the Society survive and thrive towards its 175th anniversary next year.”
As the society is a mutually owned organisation, it has been able to offer its members savings accounts above market average interest rates, helping people get the most out of their money.
Mr. Denton continued: “Despite the historic low base rate, we have continued to pay savings rates above the market average, whilst our income has benefitted by growing our mortgage balances more than 36% in the last two years.
“We are now helping more members buy their homes than ever before, which is something we are incredibly proud of in today’s fierce mortgage market.
“As a mutual, unlike the high street banks, we do not have shareholders, so all profits are reinvested into the business, in areas such as in new digital technologies, improving our member experience and increasing our capital base to support future growth.”
Mr. Denton credits the staff at SBS for their “immense work” during the pandemic as one of the reasons why the society has performed so strongly.
He explained: “It has been without doubt two enormously difficult years from an economic and operational perspective, but our staff have delivered outstanding results despite these major challenges.
“Unlike retail banks who are moving out of towns and cities across the country, we are working harder than ever to provide for our members- be that through online or in-person banking.
“When many of our competitors sought to save money by cutting services, we were looking for ways to help our members, by offering compelling interest rates for savers and have now helped a record number of people own their own home.”
Scotland’s monthly rate of 1.2% is highest since August
Fife sees £4 million sale
Shortage of housing stock continues to support prices
Average Scottish house price now at £215,388, monthly rise of 1.2%, 7.6% up annually
Scott Jack, Regional Development Director at Walker Fraser Steele, comments:
“Our report this month shows that the average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January this year. This is an £800 increase over the revised £14,400 growth in prices we witnessed to the end of December last year. Of equal significance is the fact that this heralds a reverse to the slide in the annual rate which had started over the previous three months. While the growth rate here in Scotland trails that of Wales by 1.4%, it is still higher than the average 7.3% in England and Wales overall. The Scottish market is continuing to perform well.
“What we are seeing in this return to growth is that people are still living, moving, buying and selling in the aftermath of the pandemic and the “lifestyle” changes it brought about. Working from Home has encouraged many homebuyers to move to larger premises which can accommodate a different way of living and working. Many have been in search of more outdoor space too – the so-called “Race for Space”. The issue here is that while there is a high demand for such homes, the supply is limited, so there continues to be strong competition for the properties that do come onto the market, with robust price increases as a result.”
Commentary: John Tindale, Acadata Senior Housing Analyst
The January housing market In January 2022, the annual rate of house price growth increased to 7.6%, from 7.3% in December 2021. This represents an increase of £15,200 over the average price of a property at the end of January 2021. The increase in the growth rate brings about a halt to the downturn in rates observed over the previous three months.
Over the last 12 months, there are six Local Authority Areas which between them have accounted for just under 50% of the £15,200 increase in the average price, on a weight-adjusted basis. (A weight adjusted basis takes into account both the change in the authority’s own average price as well as the number of sales involved.) The six areas are – in order of prominence – Fife, the City of Edinburgh, Glasgow City, South Lanarkshire, Highland and West Lothian.
On a monthly basis, prices in January 2022 rose by 1.2%, or £2,572, with Scotland’s average house price now standing at £215,388. This is the highest increase in a month since August 2021, and sets a further record average price for Scotland – providing an additional indication of the general upward pressure on prices.
Figure 1. The annual rate of house price growth in Scotland over the period January 2020 to January 2022 with trendline
So what is causing the ongoing upward movement in prices? In general terms, we are still living with the effects of the pandemic and the “lifestyle” changes this has brought about – in particular the “Work from Home” edict has encouraged many to move to larger premises with outdoor facilities – the so-called “Race for Space”. There is high demand for such homes, but supply is limited, so there continues to be strong competition for the properties that do come onto the market, with resultant price increases.
Last month we showed that the highest rise in property prices over the last ten years had taken place during the pandemic, with the Lothians being the top three authorities in terms of price growth. We suggested this was due to many purchasers looking for a home with plenty of space outside of Edinburgh city centre, but still remaining within reasonable commuting distance of the capital.
Transactions analysis
Monthly transaction counts
Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to January 2022, based on RoS (Registers of Scotland) figures for the Date of Entry. (January 2022 figures are based on RoS Application dates.)
The fall in the number of transactions at the onset of the pandemic in March/April 2020 is clearly visible – the March 2020 property sales that actually took place would largely have been agreed prior to the commencement of the first lockdown in Scotland on 24 March 2020. However, what is also clear is the recovery in sales during the summer of 2020, followed by an acceleration from August 2020 to a peak of 13,055 transactions in October 2020 – the highest number in a single month since November 2007.
It can be seen too that sales per month from September 2020 to March 2021 were at higher levels than the previous five years, as the market played ‘catch-up’ with the transactions lost during the spring and early summer months. It also benefitted from the LBTT tax reductions available from 15 July 2020 to 31 March 2021 (inclusive).
Noteworthy as well is the spike in sales in March 2021 – as the tax reduction expiry date approached – as is the fall in sales in April 2021, indicating the extent to which buyers had managed to bring forward their purchases into March 2021 to take advantage of the LBTT tax savings.
Sales volumes from May to December 2021 look roughly on a par with, or slightly ahead of, previous years, perhaps suggesting that the market has now returned to its pre-pandemic transaction levels.
Comparing total sales in 2020 with those of 2019, there was a 13% fall in the overall size of the market. However, looking at the total number of transactions in 2021 and comparing them to 2019 (2020 figures are distorted by the lockdown in the early stages of the pandemic), sales are up by 10%. 2021 had the highest number of transactions in a year since 2007
Figure 2. The number of sales per month recorded by RoS based on entry date (RoS applications date for January 2022), for the period 2015 – 2022. (Source: Registers of Scotland.)
Scotland transactions of £750k or higher
Table 2. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – January 2022
Table 2 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
Table 2 shows that there were 54 sales in excess of £750k during January 2022, and we anticipate that this number will increase as further sales for the month are processed by the Registers of Scotland.
In 2021, total sales in excess of, or equal to, £750k amounted to 1,097 in number – and we expect this total to reach 1,100 as RoS continues to process late registrations for the year. This is the largest number of high-value sales that we have recorded in a year.
The reasons for this dramatic increase in top-end sales in 2021 are, as previously discussed, partly to do with the change in preference for larger properties. During the pandemic the nation was instructed to “work from home”, which established an appetite for larger properties with areas which could be used as offices and ideally with outdoor facilities – the “race for space”. Home movers and office workers were thus encouraged to look for premises which better suited their updated needs.
The process of moving home was additionally assisted by the existence of the record low interest rates, which made the purchase of a top-end property more affordable, as well as the tax savings associated with the LBTT holiday, available up to the end of March 2021, which encouraged the whole market to be more adventurous in its outlook.
However, the peak of the “pandemic market” appears to have occurred in September 2021 (see Figures 1 and 2). As a result, it can be seen that in each month subsequent to that date, the number of homes purchased with a value of £750k or above, has been less than that recorded in the same month of the previous year.
Local Authority Analysis
Table 3. Average House Prices in Scotland, by local authority area, comparing January 2021, December 2021 and January 2022
Table 3 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for January 2021, as well as for December 2021 and January 2022, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 3 is based on the local authority area’s average house price for January 2022. Local Authority areas shaded in blue experienced record average house prices in January.
Annual change
The average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January. This is an £800 increase over the revised £14,400 growth in prices seen to the end of December 2021, but importantly stops the slide in the annual rate which had been evident over the previous three months. Scotland’s growth rate now trails the Wales rate of 9.0% by 1.4%, but in percentage terms is still higher than the average 7.3% in England and Wales overall.
In January 2022, 30 of the 32 local authority areas in Scotland saw their average prices rise over the previous twelve months. The two areas with price falls compared to one year earlier were East Renfrewshire and Aberdeen City. In East Renfrewshire, prices of detached homes have fallen from an average £440k in January 2021 to £415k in January 2022. Part of this reduction in the average price of detached homes in East Renfrewshire was due to a fall in the number of homes that sold for more than £750k – there were five such properties purchased in January 2021, but none in January 2022. As we reported last month, this is symptomatic of a general reduction in the purchase of high-value homes in Scotland during the final quarter of 2021, which is now extending into the first month of 2022.
In Aberdeen City the average price of flats has fallen by £5k over the last twelve months. However, in Aberdeen, there is a strong correlation between house prices and the price of crude oil, so we anticipate that property values will begin to increase following the recent dramatic rise in oil prices.
The area with the highest annual increase in average house prices in January 2022 was the Orkney Islands, where values have risen by 19.6% over the year. On the mainland, the highest rise in prices occurred in Fife, where average prices rose by 14.8%. Sales in the month included a magnificent apartment in the Hamilton Grand, overlooking the final hole of the Old St Andrews Golf Course, which changed hands for a reported £4 million. If you are an avid golf fan there is probably no better place in the world to live.
Monthly change
In January 2022, Scotland’s average house price in the month rose by some £2,500, or 1.2%, which is the highest increase of the last five months. The average price of a home in Scotland now stands at £215,388, which sets a new record level for the nation for the eighth time in the last twelve months.
In January, 21 Local Authority areas in Scotland experienced rising prices in the month, compared to 19 in December. The largest increase in average prices in January, of 5.6%, was in Na h-Eileanan Siar. However, as often stated on these pages, Scotland’s Island groups tend to see volatile price movements, due to the low number of sales that take place each month (in this case 18).
On the mainland, West Lothian saw the largest increase in prices in the month, of 4.4%. All property types saw an increase in prices in West Lothian, with the largest contribution to the increase coming from detached homes. The increase in the average price of detached homes was helped this month by the purchase of a resplendent four-bedroom property for £835k, located in Westfield, Bathgate, some fifteen miles to the west of Edinburgh. As mentioned earlier, the Lothians tick all the boxes in terms of ‘pandemic living’, with plenty of space, large properties and a relatively easy commute, if required, into Edinburgh.
Peak Prices
Each month, in Table 3 above, we highlight in light blue the local authority areas which have reached a new record in their average house prices. In January there are 15 such authorities, one more than in December. We can also add that Scotland itself has set a new record average price in January 2022 – the first of the year.
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending January 2022. As reported above, all but two of the 32 local authority areas in Scotland are reporting an increase in their house values over the last year. The two areas with negative growth are East Renfrewshire and Aberdeen City, where prices over the year have fallen by -2.5% and -1.4% respectively. The highest increase over the twelve months to January 2022 was in the Orkney Islands at 19.6%, followed by the Shetland Islands at 16.6% – on the mainland it was Fife that was top with price growth of 14.8%.
Comparisons with Scotland
Figure 3. Scotland house prices, compared with England and Wales, Wales, North East and North West for the period January 2005-January 2022
Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, Wales, North East and North West for the period January 2005–January 2022
Scotland’s Seven Cities
Figure 5. Average house prices for Scotland’s seven cities from November 2020–January 202
Figure 6. Average house prices for Scotland’s seven cities January 2022
Acute rental demand over Q3 2021 has pushed UK rental growth to its highest level since 2008
Annual rent growth has increased by 7.2% in Glasgow and 3.6% in Edinburgh
Demand continues to outstrip supply, which is running at 43% below the five-year average – exerting an upward pressure on rents
Average UK rents are now tracking at +4.6% on the year [and 6% excluding London], after climbing 3% over the last quarter – with rental demand doubling in central Leeds, Manchester and Edinburgh and London in Q3 v. Q1
Rental growth is close to, or at, a 10-year high across most UK regions – except for in London and Scotland
After 15 months of consecutive falls, London’s rents have swung back into positive territory, rising by 4.7% between June and September, as offices reopened and city life resumed
The structural undersupply of rental properties across the country and the strength of the employment market will support rental growth into 2022
UK rental growth [excluding London] is set to ease slightly to 4.5% by the end of 2022
UK rental market growth has reached a 13 year high as renters rush back to city centres, reports Zoopla, the UK’s leading property portal, in its quarterly Rental Market Report.
Record price growth defines new era for the UK rental market
Acute tenant demand over the third quarter of 2021 has propelled UK rental growth to its highest level for over a decade [13 years].
The market is being shaped by an ongoing supply and demand imbalance, with demand continuing to outstrip supply, which is running at 43% below the five year average and exerting an upward pressure on rents.
The imbalance has been compounded by both long-term structural issues such as landlord divestment following the 3% stamp duty levy introduced in 2016, and more the immediate post-lockdown demand, which collectively have eroded available supply.
Average UK rents are now tracking at 4.6% year on year, after climbing 3% over the last quarter. Excluding London, where the market has lagged, average UK rental growth has reached a 14-year high of +6%.
Rental growth is also explained in part by tenant demand moving up the price bands [see figure 1]. This reflects the ongoing search for space, which has not only characterised the sales market, but the rental market, too.
UK monthly rents now account for 37% of an average income for a single tenant occupant; however, even with strong rental growth, the measure of affordability remains in line with the five year average [see figure 2]*.
The regions registering the highest levels of rental growth are among those that are the most affordable when compared to the UK average, and as such, there has been more headroom for rents to increase.
Rental growth is close to, or at, a 10-year high across most UK regions – except for in London and Scotland. Rents are up most in the South West (9%) year on year, followed by Wales (7.7%) and the East Midlands (6.9%).
In many of the UK’s largest cities, annual rental growth is running well ahead of the five-year average rate of growth. Bristol leads with 8.4% growth in the year to September, followed by Nottingham at 8.3%, and Glasgow at 7.2%.
Rental demand in the central zones of Manchester, Edinburgh and Leeds has at least doubled over Q3 compared to Q1, and in Birmingham demand has increased by 60% – buoyed by the return of office workers and students, and the lure of city life.
Figure 2
London rents rebound into positive growth – but remain lower than pre-pandemic levels
After 15 months of consecutive falls, London’s rents swung back into positive territory, up +4.7%, in Q3. This amounts to annual growth of +1.6% compared to falls of almost 10% at the start of the year.
As with other major UK cities, market activity rose significantly in Q3, with tenancies agreed in London running 50% above the five-year average, underlining the bounceback in the market as offices reopened and city life resumed.
Despite this upward trajectory, given the falls over the last 18 months, average London rents are still 5% lower than they were at the start of the pandemic.
Rents forecast to rise by a further 4.5% by the end of 2022
Looking ahead to the new year, the structural undersupply of rental properties across the country is expected to support rental growth into 2022.
In addition, the supply shortage coupled with the strength of the employment market which, despite the pandemic, is set to remain robust, will in turn support demand and sustain rental growth.
While the level of rental demand might ease in the near term in line with seasonal trends, demand levels will remain higher than usual, especially in city centres, where there is an element of pent-up demand being released.
On the supply side, rental stock will remain tight, amid lower levels of investment into the sector by landlords, and this will underpin rental pricing. There is more leeway for stronger rental growth in areas of the country where rents are relatively more affordable, suggesting that rents could rise above earnings outside of the south of England, supporting rental growth across the UK excluding London at 6% in 2021 and 4% in 2022.
Meanwhile, London rental growth is expected to pick up to 3.5%, with rents ultimately exceeding pre-pandemic levels.
Gráinne Gilmore, Head of Research, Zoopla, comments: “The swing back of demand into city centres, including London, has underpinned another rise in rents in Q3, especially as the supply of rental property remains tight.
“Households looking for the flexibility of rental accomodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.
“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”
*The methodology Zoopla has used to calculate affordability has changed from the last quarter; Zoopla is now using ASHE data, and previously used the Labour Force Survey.
