• Scottish shoppers are leaving 68% of items unpurchased in their shopping baskets
• The offer of free deliveries (57%), selling the item cheaper than elsewhere (42%) and customer reviews (42%) are particularly likely to entice Scottish shoppers to convert to a purchase
• Glaswegians are more likely to browse online shops using personal smartphone (42%) compared to Edinburgh shoppers (23%)
• Investment in converting browsers to shoppers nationwide could cut basket abandonment in half by 2021, and boost retailer profits by £10.5bn
Shoppers in Scotland are particularly keen on free deliveries and competitive prices, finds new research by Barclays.
Shoppers in Scotland reckon that they buy only 32% of the products that they save to their shopping baskets. When asked what would encourage them to buy what they save to their baskets, 42% said customer reviews would help, versus the national average of 39%.
Shoppers in Glasgow (42%) are also more likely to shop using their personal smartphone compared to Edinburgh consumers (23%) and the rest of the UK (31%). Across the UK, the research finds that retailers may be losing out on valuable sales because consumers are finding it difficult to complete transactions using their mobile phones. This is leading to the phenomenon of ‘device switching’ where consumers browse for products on their mobile phone and then switch to another device, such as a laptop to complete their purchases.
The findings are from the Barclays Corporate Banking Online Retail Report, From Browse to Buy: The Conversion Challenge and are based on the views of 300 senior retail managers, 2,000 UK consumers and economic modelling. The study found that through investment in basic techniques, British retailers could cut basket abandonment in half by 2021 and boost retailer profits by £10.5bn over the next five years.i
Euan Murray, Relationship Director, Barclays Corporate Banking, Scotland, said: “With retailers battling the continuing pressures stemming from wider economic developments and shoppers postponing or reducing discretionary spending, the last year has been an uphill battle for the retail industry. Throughout this, online sales have continued to motor ahead and make up a portion of the shortfall.
“With 36% of UK e-retail sales via mobile, retailers must invest in their online and mobile shopping platforms to improve the user experience and drive growth. Online is the driving force for sector growth and our research highlights the overarching benefits investment in sophisticated online and mobile shopping experiences can bring.
“If they get their online strategy right, we could be looking at UK retailers selling more that £80bn of stock online by 2021, but that will only happen if as an industry we respond to what the public want from us. This research shows that a streamlined mobile offering, flexible delivery and competitive pricing can help convert more browsers to buyers.”
Nationwide trends
Across the UK, British retailers are losing out on £3.4 billion worth of goods left in virtual shopping baskets each year. Consumers switching from mobile phone browsing to laptop purchasing, a lack of discount incentives and desire for a variety of delivery options are key reasons for ‘basket abandonment’, according to the research.
At an uncertain time for the retail sector, the report estimates that investing in measures that encourage purchase conversion would cut basket abandonment in half by 2021.
Furthermore, instead of fiddling around with mobile sites that aren’t optimised, or wasting time searching through a difficult to navigate website, 614 million hours of timei[i] could be saved over the next five years. There are productivity benefits too to the tune of £4.2bniii, as time is freed to work or spend on the economy.
• Third edition of UK Prosperity Map from Barclays Wealth & Investments continues to rank UK regions and cities according to their current affluence
• Overall decline in prosperity in Scotland despite positive growth in GDP
• Earnings and expenditure on the increase as uneployment falls
• House prices and business growth still muted against backdrop of economic uncertainty
Scotland saw a drop in prosperity over the last year, reflecting uneven rates of growth in affluence across the UK, according to the third edition of the annual UK Prosperity Map from Barclays Wealth & Investments.
Against a backdrop of fluctuating economic conditions and Brexit negotiations, the 2017 UK Prosperity Map shows that, while most areas of the UK are more prosperous overall than last year, Scotland recorded a fall in its ranking despite a rise in average earnings and GDP per capita.
The UK Prosperity Map uses factors including numbers of millionaires, average earnings, business growth rates, house prices, and GDP per capita to generate a unique ‘Prosperity Index Score’ for each UK region and city.
John Godfrey, Director, Barclays, Wealth & Investments, Scotland:
“The last twelve months have seen fluctuations in the UK and Scottish economies, and this is reflected in the mixed picture of prosperity growth across the country in this year’s Prosperity Map.
“It’s encouraging to see that people in Scotland are benefiting from falling unemployment and higher earnings and that we have retained our GDP ranking, delivering the fourth highest per capita in the UK. Household spending is up but some measures like house prices are showing slower growth than the rest of the UK.
“Interestingly, business birth-to-death ratios appear to indicate reduced start-up activity. Our entrepreneurial community play a key role in wealth generation. While in recent years Scotland has developed a strong support network for start-ups with organisations like Barclays offering tailor made services for high-growth businesses and entrepreneurs, we need to continue to innovate and invest in creating a positive environment for growth.”
Growth in Scottish household expenditure and GDP
Despite uncertainty in the wider economic and political landscape over the last year, several macroeconomic indicators have seen widespread positive growth: GDP per capita[1] increased in every region, recording a 1.8% rise in Scotland £23,685 – the fourth-highest in the UK.
A 1.5% increase in Scottish household expenditure reflected the rise in average earnings – up 2.5% to £27,032 resulting in the third-highest earnings outside London and the South East.
A survey conducted alongside the Prosperity Map research, shows that consumer spend in Scotland has risen by 9% year-on-year but is 5% lower than the average UK spend.
The number of millionaires calling Scotland home has remained steady at 30,500 adults.
Some measures, however, have impacted overall prosperity. House prices lag behind the rest of the UK, rising just 2% in the last year, while Scotland’s business birth-to-death ration dropped 0.03% year on year to 1.33, the lowest in the UK.
Paul Swinney, Principal Economist, Centre for Cities, commenting on the research, said:
“Overall, this year’s UK Prosperity Map shows that the Greater South East is still outperforming the rest of the country economically, based on its ability to attract in high-skilled business investment. While other areas of the country have benefited from falling unemployment, rising prices have softened the positive impact of increased wages. This research illustrates the need for the Government’s forthcoming industrial strategy to address the barriers that currently prevent over parts of the country generating prosperity for their residents that is seen in the south-eastern corner of England.”
Barclays has completed the provision of a major new banking arrangement with Edinburgh headquartered private investment company Murray Capital.
The family-run business manages investments across a range of asset classes. The new deal sees Barclays take over as the sole banker for the organisation’s day-to-day requirements following a longstanding relationship with its previous provider.
David D. Murray, Director of Murray Capital, commented: “The new banking arrangement with Barclays represents a step change for the business as we plan for future growth. It allows us more flexibility in our finances and Barclays’ collegiate approach impressed us throughout the process. We see this as a strong financial partnership to guide Murray Capital’s ongoing success.
“We have invested in a healthy pipeline of strategic land assets across central Scotland, as well as trading businesses, and will continue to welcome opportunities in both.”
Jamie Grant, Head of Corporate Banking for Barclays in Scotland, said: “Murray Capital has diversified and grown over the past few years and was looking for a bank that shared its future vision. We worked closely with the management team to understand their requirements; this relationship approach underpins all of Barclays’ services.
“The changing economic landscape can pose challenges for Scottish businesses and we are keen to work with ambitious companies like Murray Capital to navigate uncertainties and maximise their potential.”
• SmartBusiness Dashboard brings together Barclays banking information alongside business data and insights provided by third party apps, allowing SMEs to view everything about their business in one place for the first time
• The move is a major first for the sector and will enable SMEs to easily manage their own data to help them to run and grow their business
Barclays has revolutionised its Business Banking Online offering and is pioneering the use of open data to benefit SMEs, in a banking industry first.
Barclays has collaborated with leading app providers to enable businesses to import their everyday business data and information provided by these apps into one dashboard within its online banking site.
Thanks to the mechanism of Application Programme Interfaces (APIs) – the ‘pipes’ through which organisations can securely share data – SmartBusiness Dashboard, enables businesses to import their existing apps or download new apps, from a range of providers across bookkeeping, sales and inventory, marketing and analytics and workforce management.
For the first time, businesses can view their real-time banking data and information about their business side by side, brought to life in easy-to-access charts. For example, rather than accessing each app individually, a shop owner can now securely log in to their online banking and view not only their financial information, but bring in their product sales data, website analytics and staffing rotas, all alongside their cash flow. Barclays believes this will boost business productivity and save owners valuable time.
Available to half a million of the bank’s business customers*, the SmartBusiness Dashboard can be accessed by just one click in online banking and there is no charge to use the platform.
Ian Rand, CEO for Barclays Business Banking said: “This is a significant step in transforming day to day banking- meaning SMEs can see everything about their finance and data about their business in the one place through Barclays online banking. Busy business owners shouldn’t have to spend time sorting through different spreadsheets, reports or switching between apps – we’ve created a tool to give businesses time back – and this is an efficient way to run and grow their business.
“In giving businesses the choice to import their data and working closely with partners through the platform, we believe this is a game-changer and will boost competition. No other bank is offering this to businesses. Crucially, if you are a business owner this is a safe and easy way to access a range of data about your business, putting control firmly in the hands of businesses.”
In addition to the bank’s large network of business managers across the UK, SmartBusiness Dashboard is designed to be the place where businesses can view and analyse all their information in a simple and convenient way. It will help SMEs to manage their cashflow, compare data and make improvements to help sales growth and add in marketing insight, and by removing the burden of admin, it aims to save businesses valuable time.
The introduction of SmartBusiness Dashboard is part of the bank’s investment in digital solutions, to support the needs of business owners in managing their finances and their business.
• Edinburgh residents spend £180K on socialising in a lifetime according to new research from Barclays, £30K more than Glasgow
• Almost half of Scots (48 per cent) dip into their savings to finance their social life
• Edinburgh ranked fourth in UK’s top 10 cities that spend the most on socialising
Party loving Edinburgh residents spend more on having a good time than any other city in Scotland according to new research from Barclays.
According to the statistics, the capital’s population will spend £180,119 over the course of their life time (17% more than Glasgow) on social occasions like birthdays and nights out as well as holidays with friends.
While many might assume London is the most expensive city for socialising in the UK, it’s not as pricey as Leeds or Bristol. The survey of 2,000 UK adults found that residents in Leeds spend more than any other city in the UK, with locals forking out a whopping £213K on social occasions over the course of a lifetime. Edinburgh took the fourth spot while Glasgow ranked seventh for social spending.
Top 10 cities that spend the most on socialising:
1. Leeds £213,245
2. Bristol £199,617
3. London £192,028
4. Edinburgh £180,119
5. Birmingham £170,068
6. Liverpool £161,012
7. Glasgow £150,372
8. Manchester £143,910
9. Newcastle £135,951
10. Cardiff £128,572
Proving that Scottish savers don’t always consider the long-term impact of their social spending, almost half (48 per cent) said they either often or sometimes dip into their savings to finance their packed social calendars, while two-fifths of Scots (40 per cent) admit struggling to save money due to their love of socialising.
This may come as no surprise as the survey also revealed that 45 per cent of Scots regard being popular as important to them, particularly in Edinburgh (55 per cent) compared to 44 per cent in Glasgow and 34 per cent in Aberdeen.
Peer pressure appears to the main culprit which causes Scots to overspend at social functions, with a quarter of Scots (24 per cent) splashing the cash on friends to avoid looking stingy and 16 per cent spending above their means through “Fear of Missing Out” (FOMO).
Clare Francis, Savings and Investments Director at Barclays, comments: “This research demonstrates the impact that peer pressure and FOMO can have on people’s finances, particularly during this period of high inflation. But popularity doesn’t need to come at a cost.
“For anyone feeling under pressure to overspend, take the time to consider whether you’d rather be putting that money towards your long-term financial goals. True friends will be considerate when you say you can’t afford something, and there are always cheaper alternatives when it comes to having a good time. Voicing your concerns now could make a big difference to your finances in the long term, as there is no time like the present to start saving for your future.”
Under pressure:
• The people of Edinburgh worry the most about appearing tight with money, with over a quarter (27%) thinking their friends will judge them if they attempt to be frugal.
• The research showed that Glaswegians are the least likely to talk about money with mates, with over a fifth (22%) feeling awkward about discussing budgets with friends
• The people of Newcastle feel the most pressure when it comes to spending after hours, with a fifth claiming friends often coerce them into overspending on nights out.
• The research found that the people of Cardiff believe themselves to be the most popular, with almost three quarters (73%) believing they have lots of mates. However, residents of Cardiff are also most guilty of spending money for fear of missing out, with a fifth (19 %) admitting to dishing out the dough due to FOMO.
• Bristolians are most likely to get irritated with friends that don’t consider that they have less disposable income than them when making plans, with a quarter (24%) admitting this.
• The people of Manchester are the least conscious of friends with less money than them, with a quarter (25%) not bothered if their friends can afford social occasions, so long as they themselves can.
• Londoners might be most guilty of emptying their piggy banks, with 41% of residents claiming to regular dip into their savings to afford nights out with friends. Londoners also feel the most pressure to spend money on their partners, with a tenth (11%) claiming to be under the thumb of their spouse.
• The people of Birmingham are most guilty of having a financial feud with a friend, with almost a fifth (17%) having fallen out with a mate over money
Who spends the most on:
• Nights out – Edinburgh residents spend £101K on nights out in their lifetime
• Work Nights Out – Londoners spend £52,961 on evenings out with colleagues in a lifetime
• Taxis – Londoners rack up a total fare of £38,749 in a lifetime
• Holidays – Cardiff residents splash the most cash on holidays, spending £4,447 on holidays with friends in a lifetime
• Parties – Leeds locals spend almost £5K on parties in a lifetime
TOP TIPS FOR BUDGETING FOR SOCIAL OCCASIONS – FROM CLARE FRANCIS:
A night in with friends
Social occasions can be a considerable drain on your finances and if you’re not careful, the cost can get out of control – a new outfit, drinks, food, taxi fare, it all adds up. Instead of going out, why not try staying in? This doesn’t necessarily mean it will be a dull affair. You could host a cocktail party and ask everyone to bring a bottle of spirit or mixer, or have tapas and TV party and ask each friend to bring one dish. There are lots of ways to spend quality time with friends without breaking the bank. After all, a good time indoors is still a good time.
The friends sharing economy
In a recent survey, Barclays found that a third of people living in the UK would be interested in having a monthly cap on the amount they could spend in their favourite stores. This is because we are a nation of impulse buyers, but while it might be tempting to buy a new outfit for every night out, the cost can often be too high. Instead of buying that new dress, why not swap one of yours with a friend’s? Open up the conversation and find the people in your group that are open to making an exchange and roll with it. You never know, your old ‘rag’ might be just what they’ve been looking for.
Free activities
There is a tendency among Brits to spend a lot of money when they go out with friends, but it’s not always necessary. With summer officially here, why not spend an afternoon in the park. Or for rainy days, take a trip to a free museum or an art gallery. Try going out without spending money anything – you’ll discover there are lots of ways to have fun without breaking the bank. If you’re looking for inspiration, head online and find recommendations on local websites and money saving forums.
Plan ahead and start saving early
If planning a big social event with a group of friends (say a holiday or a hen or stag do), consider setting up a standing order. You and your mates can make regular monthly payments over a period of time so that when the time comes to go away, your trip will already be paid for. And importantly, it will be paid for in a regular way that won’t leave you feeling cash-strapped. Another great way to save is by setting up a flexi-saver account or Cash ISA to run alongside your regular savings account. Putting away even £50 a month can make a real difference when it comes to paying for those big social occasions.
Set a monthly budget
Our research found that a significant number of people often spend money with friends due to fear of missing out or because of peer pressure, but there are easy ways to avoid this. Create a monthly budget (based on your incomings and out-goings) and set aside a figure that is specifically saved for social occasions. If you want to go a step further, then create a separate pot for ‘last minute invitations’. If you’re really struggling for cash though, don’t be afraid to say no. Your friends will forgive you!
Depending on your savings goal, head to Barclays finance manager to learn more on different ways to save: http://www.barclays.co.uk/savingsgoals
• More than one in five (22%) service leavers will face employment challenges, resulting in a potential loss of £1.5bn to the economy according to new research from Barclays
• Ex-military could help to plug UK skills shortage, by filling one in six predicted vacancies
• Barclays urges employers to recognise the value that veterans can bring to the UK workforce
A new study from Barclays has revealed that the UK economy could suffer losses of up to £1.5bn in the next five years if service leavers aren’t able to find employment, or are under employed upon leaving the Armed Forces.
The research calculates the direct and indirect contribution of the up to 85,000 personnel that are estimated to leave the military by 2021; a figure which is equivalent to the number of people currently employed in the UK creative, arts and entertainment sector. While many veterans make a successful transition to civilian employment, the study predicts that one in 10 veterans (10%) will experience long term unemployment, and that a further 12% will be sub-optimally employed (where their skills are being under-utilised by employers).
Those employers that overlook ex-military when recruiting are failing to recognise the valuable skills and experience this cohort of highly talented individuals possesses, as well as the billions of pounds invested by the MOD in the training of military personnel. The impact of this could prove detrimental to the future growth of UK plc, at a time when bolstering the skilled workforce is crucial to securing the country’s economic future.
Around two thirds of employers are expected to experience deficits in soft skills within the next five years, with more than 600,000 jobs left unfilled. By deploying more ex-military personnel into civilian job roles, one in six of these vacancies could be filled, resulting in a contribution of £12.6bn to the UK economy. This is approximate to the annual production of the UK Pharmaceuticals industry.
Previous research conducted by Barclays has shown that many ex-military already face a number of significant challenges when applying for civilian work, many of which stem from a lack of understanding from prospective employers and colleagues alike about what military experience can offer the workforce.
Barclays, as a founding member of the Veterans Employment Transition Support (VETS) programme, is urging employers to see hiring veterans as a business imperative. VETS is formed of a coalition of willing companies, the MOD and leading military charities, who seek to work within existing transition support efforts to maximise employment outcomes for veterans and employers alike.
Nicholas Trowell, co-chair of the Barclays Armed Forces Transition, Employment & Resettlement (AFTER) Programme in Scotland, said: “A career in the military has many similarities to that in the commercial sector, yet some employers are still underestimating the value of veterans’ skills.
“This research underlines the importance of thinking beyond experience in order to plug crucial vacancies with capable individuals – and benefit from a new perspective at the same time.
“Programmes such as VETS and AFTER are designed to help employers harness the military skills that parallel those in the workplace more effectively.” Johnny Mercer MP, Plymouth, Moor View said: “This research by Barclays demonstrates the enormous value that ex-service personnel bring to the UK workforce and to the economy as a whole. I would be delighted to see businesses across the UK utilise the unique skills and experience of our ex-military service men and women, helping them to overcome the inevitable challenges that can come with returning to civilian life.”
Victor Olet, veteran said: “The assistance that I got from VETS really helped me manage the transition from military life. When I first started applying for jobs I had a low response rate from the businesses I was contacting, but the advice I was given about improving my CV really changed that. The VETS programme also really helped build my confidence ahead of job interviews.”
One of the UK’s largest food packaging companies, Smith Anderson Group, has agreed a new financial package with Barclays, including day-to-day banking, invoice discounting and a facility to help manage longer-term foreign exchange (FX) exposures.
The deal follows Smith Anderson Group’s recent £35 million European contract win with the world’s largest fast food chain McDonald’s, which will see the company expand its operations to supply select markets in Central Eastern Europe. The agreement was secured in part by the company’s increased competitiveness due to the weaker pound.
Smith Anderson Group is a family-owned business that has been in operation since 1859 and now has over 200 employees. It produces up to 60 million paper bags per week at its custom built facility in Kirkcaldy, Fife, suppling big brand names such as McDonald’s, Harrods, Starbucks, Waitrose and Boots.
With European trading now on the cards for the business well into 2020, Smith Anderson Group approached Barclays to discuss longer-term FX management.
Michael Longstaffe, Chief Executive at Smith Anderson Group, commented: “Securing the extended European contract with McDonald’s was a great achievement for the business. With this, however, came a degree of uncertainty, especially around the Pound to Euro value, so we felt it was essential to lock-in a foreign exchange rate to provide us a level of assurance and guaranteed margin.
“Barclays’ offering was second to none and they recognised our ambitions for long term sustainable growth. The entire process has been made simple by the team and as a result we’ve now moved over our day-to-day banking and invoice discounting facilities as well.
“I firmly believe that our partnership with Barclays and our new agreement with McDonald’s will consolidate the company’s position in the marketplace, helping us to achieving our vision to be Europe’s leading provider of paper packaging solutions.”
Paul Smith, Corporate Development Director for Barclays in Scotland, said: “Companies are operating in a challenging and uncertain market at the moment but Smith Anderson has taken advantage of the opportunities the current climate offers for growing international trade.
“Managing foreign exchange exposures has always been a complex task for businesses of all types but we have a range of FX services and expertise that help reduce the risk of volatility. We’re keen to help even more companies like Smith Anderson realise their global ambitions and successfully navigate the changing economic landscape.”
Barclays has announced two key appointments to its Business Banking team as it continues to extend its on-the-ground support for Scottish SMEs and scale-up businesses.
Graham Cambridge has been named High Growth & Entrepreneur Business Manager and Grant McNally as Business Manager to help deliver the bank’s ambitious growth strategy in Scotland.
Graham will take responsibility for managing a portfolio of high-growth SME companies with up to £6.5m turnover as the Business Banking division’s first dedicated High Growth & Entrepreneur Business Manager in Scotland. His role will involve further expanding the local delivery of Barclays’ successful High Growth & Entrepreneurs strategy, which aims to help business realise their potential at the often challenging scale-up stage.
Graham started his career with Barclays as an intern in 2013, before progressing through the bank’s Corporate Banking graduate programme where he gained experience across a variety of sectors.
Grant’s new role as Business Manager will focus on business development in Glasgow and the west of Scotland, supporting companies with turnover of up to £5m. His appointment comes as the bank is undertaking a recruitment drive for five additional regional Business Managers to strengthen its presence across Scotland.
He joined Barclays through its Corporate Banking graduate scheme in 2012, working in business analyst and relationship support roles for a broad range of clients, from PLCs to high growth starts-ups.
Both will report into Head of SME Stuart Brown who is leading the bank’s drive to grow the bank’s SME and high-growth clients in Scotland.
Stuart Brown, Head of SME Scotland, Barclays commented: “Following the launch of our £500m SME fund last year, the time was right to expand our Business Banking team in Scotland.
“We strongly believe in a relationship approach to supporting business owners on their journey, whether they are start-ups, scale-ups or well-established. As our SME client base grows we are investing in the right people on the ground in the regions to understand their individual needs to then guide and advise them. Graham and Grant are homegrown Barclays talent and their skills and experience will help us further strengthen our relationships with existing and new customers.”
Barclays’ Scottish SME fund was launched in June 2016 to provide access to funding for businesses across all sectors with turnover up to £25m. It forms part of a wider commitment by Barclays to support fast-growing companies with its High Growth & Entrepreneurs programme. The programme offers locally delivered financial advice, business skills development, networking opportunities at a local, national and international level and access to Eagle Labs and RISE accelerators. The Bank also provides a unique Innovation Finance Venture Debt product via an additional £200m fund.
• The Barclays UK Property Predictor reveals Glasgow’s suburbs set to increase by almost a quarter, followed by City of Edinburgh and Stirling
• Property prices across Scotland will rise by almost 6% in the next five years, bringing the average property value to almost £180,000
Glasgow’s suburbs are predicted to see the largest increase in average house prices in Scotland by 2021 according to new research released today (24 May 2017), the Barclays UK Property Predictor.
Affluent areas in Glasgow’s outskirts, East Renfrewshire and East Dunbartonshire, are set to rise by almost a quarter (23.8% / 22.5% respectively) over the next five years. Hot on its heels is City of Edinburgh (20.2%) and Scotland’s central belt hotspot, Stirling (19.1%).
Over the next five years, high employment rates, growth in private housing market levels and an increase in rates of average earnings will contribute to rising property prices across Scotland. The country is expected to see an overall average increase of almost 6% across the next five years, making it the fifth highest performing region across the UK, behind London (11.88%), East of England (9.38%) the South East (8.74%) and the Midlands (6.28%).
The Barclays UK Property Predictor provides a three-to-five year forecast of investment hotspots on the residential property market, revealing the areas across the UK where house prices and rental incomes are expected to rise. The research uses factors including rental trends, employment levels and commuter behaviour as well as current house prices to create an index of property hotspots. The research also surveyed high net worth investors from across the UK, to reveal where and why they plan to purchase property in the future.
According to the research, and despite an uncertain economic and political climate, the UK property market remains buoyant with prices in areas across the UK set to rise by an average of 6.1% by 2021, bringing the average value of a UK property to almost £300,000.
East Renfrewshire
Predicted to see the biggest property price increase in Scotland is Glaswegian suburb East Renfrewshire, the only destination in Scotland to rank within the top 20 areas of highest growth across the UK behind Westminster (31.9%), Cotsworld (31.8%) and Warwick (29.5%).
East Renfrewshire has long been considered an ideal place for aspiring young families to set up home. Up-market retailer, Whole Foods, opened its first Scottish store in Giffnock, while Newton Mearns and Clarkston are typified by excellent schools and high house prices. There is also a high proportion of highly qualified residents in East Renfrewshire, with 53% of the population educated to degree level or higher. These qualifications are linked to higher potential earnings and a related upwards pressure on housing prices.
East Dunbartonshire
Similarly, East Dunbartonshire, situated north of Glasgow, has ranked second in the Scottish regions and is expected to rise by 22.5%. Home to two of Scotland’s most well-heeled suburbs, Milngavie and Bearsden, they have some of the country’s best schools which are regularly ranked in Scotland’s top ten as well as being a sought after location for retirees.
With easy commuting distance from Glasgow, the research suggests that the once desired busy city life has been ditched for a more relaxed suburban lifestyle as parents are keen to escape the hustle and bustle of city centres to set up home in the outskirts.
City of Edinburgh
Home to five of the top ten most visited attractions in Scotland, City of Edinburgh has long been one of the most expensive places to live in Scotland. It is perhaps no surprise that that the city ranks within the Scottish top three, with prices expected to rise by a fifth (20%) by 2021.
The financial and tourism capital is also expected to experience one of the highest levels of short to medium term employment growth in Scotland over the 2017-2021 period (growth of 2.8%), and at the same time, the city is expected to see one of the highest population growth rates over the next five years at 4.5%, which will increase pressure on housing.
Edinburgh is also experiencing the highest rate of business start-ups per capita in Scotland (with nearly 88 businesses set up each year per 10,000 working age population).
Stirling
One of Scotland’s most historic cities, Stirling, is also expected to see prices rise by almost a fifth (19%) across the next five years. Abundant in rich heritage with its own castle and Wallace Monument, the traditional market town in the farmlands has become one of the country’s most desired locations.
Stirling recently secured a City Deal, thought to be worth around £500m, which focuses on the creation of a digital district, city park and regeneration of the harbour and River Forth. The project is predicted to create 3,000 new jobs and increase tourism by 25% to turn the city into a digital technology, food and drink hub.
The economic and employment growth opportunities in Scotland are pushing up house prices in many areas of the country, with Stirling being one of them. East Renfrewshire, East Dunbartonshire and Stirling all enjoy populations with high earnings, ranging from 6% to 28% higher than the UK national average.
Scottish property investment
The research from Barclays also reveals that investors in Scotland own three properties on average, bringing the average total value of a property portfolio in Scotland to £818,093. Across all UK respondents, one in 10 (11%) own property/properties in Scotland and over a third (39%) are being used for rental income. Over a third (36%) of investors in Scotland are planning to buy new property/ properties in the next three to five years.
Calum Brewster, Managing Director, Barclays, Wealth & Investments, North Region, Barclays, said:
“It’s encouraging to see that property is still viewed as an important part of the investment portfolio in Scotland with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long-term investment security.
“There is also increasing confidence among property investors in Scotland, as many are taking a long-term view when it comes to putting money into property. It’s also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the South of England into Scotland, with economic growth and employment opportunity fuelling growth in hotspots across the UK.
“We are here to support our clients at various stages of their investment journey and we can help by offering a range of innovative and personalised mortgage solutions to meet their individual needs, whether they are a seasoned investor or a millennial looking to increase their income.”
Kelburn Castle and Estate, one of the oldest family owned estates in Scotland, has secured £1m of funding from Barclays to support the expansion of its luxury camping site.
The 13th century castle and 3,500 acre estate near Fairlie in North Ayrshire has been owned by the Boyle family since 1140. The present owner, Patrick Boyle, the 10th Earl of Glasgow, opened up the castle along with its grounds and gardens to the public in 1977.
A number of new attractions were introduced over the years and, following a 400% uptake in the estate’s glamping experience, the Boyle family approached Barclays for support in restructuring borrowings and secure investment capital.
David Boyle, son of the 10th Earl of Glasgow and Commercial Manager of Kelburn Castle and Estate, commented: “This deal marks the first time our family has banked with Barclays, and I have to say that the experience and service has been unrivalled. We needed a banking partner that would take the time to understand the heritage of our business but also recognise our ambition for growth. The Barclays team showed a willingness to help from the outset and their industry knowledge made them a perfect fit for us.
“This funding will allow us to reinvest in the estate to increase visitor numbers. We plan to install an additional nine yurts in direct response to the growing demand for glamping, and we are considering adding a communal building for campers to further drive growth and transform the site into a hospitality and music festival venue.”
Kelburn Castle and Estate is one of a number of businesses to benefit from Barclay’s £500m SME loan fund, launched in 2016 to provide access to funding for businesses across all sectors with turnover up to £25m. It forms part of the bank’s commitment to create a supportive environment for business growth in Scotland.
The deal was led by Barclays Agriculture Relationship Director Scot Howie, he added: “The importance of estates diversifying their offering and developing new income streams is vital for creating long-term sustainability, whether it’s introducing renewables or opening their doors to the public to enjoy their heritage. Our experienced agriculture team has helped many landowners implement initiatives to improve business resilience and increase profitability.
“Kelburn Castle and Estate has successfully accomplished this by continually evolving its offering as a popular visitor attraction and tourist destination in line with changing consumer demands. The estate now has a strong market position in Ayrshire, and we’re proud to support the family and help them make the most of opportunities for long-term growth.”
