Scottish property market set for ‘Boris bounce’

19/12/2019 09:49:25

The Conservative party may have been largely rejected by Scottish voters, but the property market north of the border is already benefitting from a “Boris bounce” according to forecasters.

While Glasgow and its surrounding areas, including Lanarkshire and Argyllshire, have fared better than most of the UK since the 2016 Euro referendum, homes sales have periodically been affected by Brexit uncertainty, notably ahead of scheduled leave dates.

Last week's General Election prompted an immediate surge in property related share prices and markets are now hoping to capitalise, with price growth in Scotland anticipated to rise by 20% over the next five years.

Prices north of the border increased by 2.4% in the year to September and a further 2% rise is expected in 2020.

Property portal Rightmove has already upgraded its growth forecast for next year as it expects the election result to give movers “a window of certainty”.

Paul Burns, Director of Scottish Property Centre Cardonald, said: “Irrespective of how people voted, I think we’re seeing a general sense of relief among buyers and sellers that there’s now greater certainty in the market.

“With a clear path to exiting the EU now in sight, I feel that the coming months will see a return of some aspirational buyers and sellers who were reluctant to act ahead of the election.”

He added: “I think that, in the coming months, we could see a surge in first-time buyers seeking to act before prices rise beyond their reach.

“With borrowing rates at an historic low and with no sign of them rising as we formally exit the EU, that will further boost the number of buyers and sellers in 2020.”

During the election campaign, Boris Johnson signalled that he would consider scrapping stamp duty for properties under £500,000.

While he is not expected to do this in the upcoming budget, any movement in that direction would put pressure on the Scottish Government to introduce similar changes to the Land and Buildings Transaction Tax (LBTT).

Mortgage providers have been falling over themselves to offer the cheapest deals in a bid to attract wary borrowers, and it seems to be working.

Data released yesterday by UK Finance shows there were 32,260 new first-time buyer mortgages completed in October 2019, 2.8% cent more than last year.

New remortgages were down 20.8% and buy-to-let mortgages fell by 1.5%, perhaps a reflection of the growing restrictions and expenses faced by UK landlords.

For more information on properties available for sale and rent in your area, call your local Scottish Property Centre branch or visit www.scottishpropertycentre.net

 

 

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