Strength of central Scotland property markets continues to defy Brexit uncertainty

19/02/2019 16:03:38

It’s difficult to imagine Brexit is not having an impact on most industries and a new report reveals UK estate agents are at their gloomiest in a decade.

But it’s a sign of the tremendous underlying strength of property markets in central Scotland that uncertainty over our future relationship with the EU has failed to put a dent in activity or prices here.

The latest monthly snapshot from the Royal Institution of Chartered Surveyors shows a further weakening of the market across the UK, with demand, prices and sales expectations all down.

Annual house price growth has slowed to its lowest rate since July 2013, with average prices up 2.5% in the year to December, down from 2.7% in November.

But these trends are largely a southern English phenomenon, exacerbated by recent Government measures to calm housing markets in London and the South-east.

In Scotland and Northern Ireland property values continue to rise and these areas have the strongest price expectations for the coming year, followed by the north-west and Wales. In London prices are expected to fall.

Since the start of the year, demand  has weakened in virtually every part of the UK, except for Scotland, where it was flat.

In a sign of the optimism that exists north of the border, another report says the cost of housing in Glasgow will rise above UK averages over the next five years.

Figures published by property consultancy firm JLL anticipate property prices in Glasgow will rise by 13.7% by 2023, compared with 11.5% in Scotland, marginally higher than the predicted UK average.

This is a reversal of recent trends - house price growth in Scotland rose by 17% in the past five years, compared with 31% growth in the rest of the UK.

Scotland, like the rest of the UK, has under-delivered the number of homes needed to meet demand and the Glasgow market has suffered from an under-supply of housing for several years, according to the report.

It blames a shift in emphasis away from build-for-sale towards build-to-rent since 2017. An additional 4,000 build-to-rent units are currently in the pipeline, scheduled for completion in 2021 and 2022.

Paul Burns, a Director of Scottish Property Centre Cardonald, said: "Scotland's major population centres have continued to see a growth in property prices despite the impact of Brexit which appears to be more pronounced south of the border.

“This is partly due to a shortfall in supply but also demonstrates the resilience of the property sales market.”

For more information on property sales trends in central Scotland call your local Scottish Property Centre branch or visit www.scottishpropertycentre.net

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