Orderly Brexit predicted to push Scottish property prices up by 20%

22/11/2019 06:44:47

Property prices are expected to rise by 20% over the next five years in the event of an orderly Brexit, according to a new report.

The research, by an Edinburgh-based estate agency, suggests now is an ideal time for first time buyers to gain a foothold on the property ladder, ahead of the predicted increase.

While rates will vary across the country, the rate of increase north of the border is predicted to be 5% higher than the rest of the UK.

Glasgow and its surrounding areas, including Lanarkshire and Argyllshire, are expected to benefit from the bounce.

According to the report, Scotland’s key fundamentals – quality of life, good schools and economic growth in hubs of Edinburgh and Glasgow – will drive the growth.

Craig Smith, Director of Scottish Property Centre Shawlands, said the increase will affect different groups in varying ways.

“People who benefit most will be downsizers and those joining the housing market now, who will see a short-term, substantial return on their investment. The benefits to the latter group will start to disappear as prices increase.

“Those moving up the housing ladder will see the value of their current properties increase between now and 2024 but they will have to pay proportionately more for their next home.

“Such a dramatic rise will also impact on people living in rented properties – expect to see rents rise in line with property prices - homeless numbers could rise as would costs to local authorities of providing housing benefits and finding accommodation.

“As such, we would expect to see movement by the Scottish Government to throw its weight behind a substantial programme of building and supporting affordable housing.”

Mr Smith added: “Of course, this is all predicated upon there being an orderly Brexit which, at this stage, is by no means a certainty.”

For more information on available properties to buy and rent in your area contact your local Scottish Property Centre branch or visit www.scottishpropertycentre.net

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