The most acute perceived threat to the long-term capital value of estates is that of Scottish independence, a specialist estate agent said at a conference held in Edinburgh today (February 7).

Independence was at the forefront of almost everybody's mind, Strutt & Parker partner Robert McCulloch told an audience of more than 100 property professionals at the firm's Scottish Property Seminar held in Edinburgh's Royal College of Physicians.

Mr McCulloch said: "In the recent history of the estate market in Scotland, there has been the perception of some dark shadow looming in the form of an actual or anticipated legislative change, or an impending event that casts doubt on future demand and buoyancy in the market."

He said fears that transactional activity for estates would dry up because of the Labour Party's accession to power 15 years ago or that, five years later, the introduction of the agricultural Tenants' Right to Buy legislation would cast a similar blight had both proved to be without foundation.

Mr McCulloch stated: "The market responds to confidence, or lack thereof. We do not yet know what the SNP are planning to impose if they are successful in their Referendum for Independence but we have to think about recent historical examples where we were worried about the future and perceived threats did not produce the negative effects forecast."

There were other threats to market confidence, said Mr McCulloch, from the uncertainty around the question of Scottish Independence and the performance of the UK and European economies to the introduction of the Wildlife and Natural Environment Act 2011 which puts landowners and managers at risk of prosecution for the actions of their employees and the impending reform of the Common Agricultural Policy.

However, he said: "I believe that there are also opportunities and that the enjoyment and satisfaction that comes with estate ownership in Scotland outweighs the disadvantages that these threats pose. So, despite the challenges ahead, I firmly believe that this market will remain open for business."

He told the conference, organised by Strutt & Parker, that more Scottish sporting estates were sold in 2011 than in any other year for a decade. More than £80 million was invested in sporting estates last year, double the sum spent by purchasers in 2009 and £20 million more than in the previous peak year of 2007.

Mr McCulloch spoke of an estates market which had shown "considerable recent vigour against a backdrop of economic malaise and uncertainty". He said: "The number of estates to have sold across Scotland during 2011 has increased to 21 from 17 in 2010, 13 in 2009 and 12 in 2008. Three estates of more than 15,000 acres were sold last year. Three were sold at prices in excess of £7million - a first in my 10 years in the business."

He added: "Of the 21 estates sold or put under offer in 2011, 16 (76%) were sold to UK-based buyers while the remaining five (24%) were sold to overseas-based buyers."

Mr McCulloch also told the conference that Strutt & Parker is in touch with 63 hopeful buyers with a combined buying power of £475 million.

Andrew Smith, partner in Strutt & Parker's Edinburgh office, gave a talk on Valuations and said the property market turmoil of 2008 and 2009 had "brought the issue of valuation into sharp focus". "It has spawned a new work source for many, being the pursuit of negligence claims against surveyors. Lenders are dusting down their files containing valuations on properties that have been repossessed and are subsequently being sold for significantly less than the amount of the loan. In effect they are researching whether the property the loan was secured against was correctly valued at the time the loan was made."

He continued: "However, it must be remembered that valuations represent a snapshot in time and while it is easy with the benefit of hindsight to say that the valuation of a property was too low or too high, volatility in the market can make the job extremely difficult for a valuer."

He pointed to Northern Ireland where a rise in house prices of 40% over 18 months was followed by a fall of 35% in the following 24 months and said: "These types of movements are almost impossible for a valuer to keep up with."

When asked about Home Reports, Mr Smith said: "Buyers do not believe in them anymore. People have lost their faith in them. However, I don't think it is going to change and it is something that we have just got to deal with on the ground. At the end of the day we regularly sell properties for above Home Report value but there are different levels of demand for different sectors."

Also at the conference, Sharon Zaremski spoke about the outlook for the new build sector. "The recession has hit the private house building industry particularly hard, with a 51% fall in completions since 2007-8. Private sector completions for 2010-11 stand at 10,350, the lowest level for more than three decades."

Mrs Zaremski said: "The credit crunch, collapse of the wholesale lending market and much stricter rules for lenders have dramatically reduced the availability of mortgage finance. There is no doubt that challenging times still lie ahead for new build house builders and developers in Scotland. However, many have risen to the challenge and are now competing strongly with the established market."

Mrs Zaremski said buyers have become much more specific about the layout and size of accommodation as well as the quality of the specification than ever before. Many developers, in finding ways to survive and compete in the market, are providing a bespoke service where purchasers can specify far more than just kitchen units and tiles.

She added that the fall in land prices has had its advantages. She said: "The base cost of any development is the land it is to be built on, and as the price of land has fallen dramatically over the last three years it has become much more aligned to the value of the end product. Therefore, today's house builders and developers have the opportunity to plan and build new homes with today's market in mind, with a strong certainty of a good rate of return on their investment."

Mrs Zaremski added: "While there is no quick fix, I am of the opinion that the range of incentives available, low bank interest rates, a significant saving in energy costs combined with superior designs and development layouts will provide new build properties in Scotland with a solid foundation for the future."

Also at the conference, Blair Stewart, partner in charge of the Edinburgh residential team, said: "We have seen a mixed market in the city. 'Best in Class' property is still highly sought after whether they are detached houses or flats.

"Above £1.5m, there are fewer buyers in the market place. Below this level and in the sought-after areas, the market is robust for family houses and city centre flats. The lower end of the market flats have suffered from mortgage lending constraints, over supply and, according to the latest quarterly figures from the Registers of Scotland, demand has fallen by 6.3%.

"Our prediction for the coming year is split into two categories. For properties that can be considered to be 'best in class' there will be no change. Those properties that would not be considered 'best in class' and may be compromised by busy roads, on a flight path or by a train line are likely to fall by 5% during 2012. The overview is a similar market place to 2011 with the stock market and Eurozone crisis continuing to have an impact on market confidence."

Mr Stewart added: "Given the excellent start that we have had in January, consisting of one sale in excess of £2m and three over £1m and several others in our core market area, I am optimistic that the Edinburgh market will remain reasonably firm throughout 2012 despite ongoing challenges."

Delegates also heard about the difficulties posed by new legislation in the management of estates, the opportunities for planning and development and the potential advantages of tapping into the renewable energy industry.