Project Scotland

Brexit tipped to impact on Scottish house price growth

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HOUSE prices are set to remain flat in Scotland next year, according to new forecasts from JLL.

The firm predicts that Brexit will “dominate” UK housing markets in the short to medium term but tips the market to remain “reasonably strong and active” despite uncertainty caused by the UK’s decision to leave the European Union.

JLL forecasts that Scotland’s house prices will remain flat in 2017 with 1% growth the following year. House price growth is predicted to rise to 4.5% pa by 2021.

Jason Hogg, director residential at JLL in Edinburgh said, “Somewhat against the grain, housebuilders in Scotland have enjoyed a reasonable, immediate post-Brexit sales environment benefiting from the Scottish Government’s Help to Buy Scheme and record low interest rates.  Enquiries for new development opportunities to meet housing demand in the short / medium term remains strong. However, we acknowledge that economic uncertainty associated with whatever Brexit we end up with is harder to model on larger sites.

“What has been particularly encouraging is to see how certain housing markets within Scotland, particularly Edinburgh City Centre, have seen strong price growth and increased levels of demand on new build housing stock.”

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