Scottish house prices set to increase by 20% over five-year period

13/07/2018 17:42:47

House prices will rise faster in Scotland than anywhere else in the UK this year, according to new research by PwC, which predicts the average Scottish home will cost 20% more in 2022 than in 2017.

This means that the average house price in Scotland, which was £143,000 in 2017, will increase by 20% to £172,000 in 2022.

The findings, part of the professional services firm’s July 2018 UK Economic Outlook, indicates that house prices will increase by 4.8% in 2018, comfortably outpacing the UK average.

Projected UK and regional house price growth and house price values (£000’s)

 

Avg house price rise

Avg house price values (£’000s

in cash terms)

Region

2018

2019

2020-2022 (avg)

2017

2022

East of England

4.0%

4.5%

3.4%

283

340

East Midlands

4.4%

3.7%

3.4%

180

216

South West

4.3%

3.7%

3.6%

245

295

West Midlands

4.8%

4.3%

3.6%

185

225

South East

2.3%

3.1%

3.3%

318

369

North West

3.2%

2.7%

3.5%

155

182

London

-1.7%

-0.2%

2.6%

480

509

Wales

3.0%

2.1%

3.4%

150

175

Scotland

4.8%

3.4%

3.6%

143

172

Yorkshire & the Humber

3.5%

2.7%

3.4%

155

182

Northern Ireland

3.4%

3.9%

4.0%

128

154

North East

1.2%

0.7%

3.1%

127

141

UK

2.9%

2.8%

3.4%

221

259

Source: ONS, PwC analysis

PwC said it expects to see a softening of average UK house price growth to 2.9%, with prices expected to rise across the UK with the exception of London, where it expects a 1.7% fall.

Only the West Midlands is predicted to match the 4.8% house price increase expected north of the Border.

David Brown, government & public sector leader for PwC in Scotland, said: “The Scottish housing market is set to grow at a faster pace than anywhere else in the UK in 2018, and we predict a 20% increase in the average house price, to £172,000, between 2017 and 2022.

“Such an increase is likely to widen the gap between wage growth and house price growth, which could impact activity in the market, though this will be mitigated to some extent by the ongoing shortage of new homes being built in Scotland.”

Scottish Property Centre Director, Craig Smith, commented “Stats and predictions for the whole of Scotland can give a general overview of which direction the market is heading. However, the property market in Scotland varies hugely across the country so be cautious and don’t assume the value of your home has automatically increased in-line with the stats. Even narrowing information down to local postcodes is, at times, still not enough to paint an accurate picture of your specific property. In some streets, one end can perform better than the other!

If you are thinking of selling and want an accurate valuation of your property and its potential selling price, we’d advise instructing a valuation with a local agent who knows your area inside out.”

Source: Scottish Housing News

If you are thinking of selling, contact your local Scottish Property Centre branch now for a free market appraisal.

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