Despite a slight blip towards the end of 2015, estate agents firmly believe that house prices in Scotland will rise steadily in the coming months, with property hotspots in urban areas outperforming the rest of the country.
Property experts are predicting that the increase will see the average house price in Scotland exceed £175,000 within the next 12 months.
The Royal Institution of Chartered Surveyors (Rics) attribute the price boost to a lack of new houses coming on to the market.
As you might expect, the best performing areas are predicted to be in Glasgow, Edinburgh and Aberdeen – despite, in the case of the latter, a drop in oil prices − while the rural property market will lag behind towns and cities.
However, growth will depend on mortgage rates staying low, meaning that a long-overdue change in interest rates could have an impact, while supply of houses coming onto the market continues to have an effect.
Changes in tax laws which will increase the amount of Land and Buildings Transaction Tax (LBTT) on second homes are also expected to disrupt the buy-to-let market.
Faisal Choudhry, director of residential research at Savills Scotland, said:
“The beginning of 2016 will without doubt witness a surge in activity among those looking to purchase a buy-to-let property or a second home, following the additional levy on such properties recently announced, which will come into force in April 2016.”
In 2015 the market for properties between £150,000 and £300,000 was particularly strong, with properties within that bracket selling well and spending relatively short periods on the market, and all indications are that this year will see that trend continue.
Kevin Maley of Strutt and Parker’s Inverness office, said:
“As ever, properties in the north of Scotland are seen to be good value for money when buyers are looking for more brick for their buck.
“We go into 2016 with renewed optimism and predict that the supply and demand will remain on an upward trajectory.”
[Herald Scotland, Jan 4 2016]
All in all, 2016 promises to be another interesting year for the property market. Of course there is sure to be a huge amount of market variation throughout the UK, with many areas having an excess of properties on the market which will struggle to sell.
If you’re looking to buy or sell a property this year, be sure to consider how the local market is performing and understand what sales in that region entail. To find out more about selling a property in Scotland take a look at our blog post about what to expect when a having a property surveyed in Scotland.Back to all articles