The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Saturday, 19 July 2008

Scotland’s housing market shows more confidence than rest of UK

By: Murdoch MacDonald

RECENT research by property website has highlighted the strength of the Scottish property market compared to the rest of the UK.

A survey of 3,500 consumers showed that compared to house-hunters across the rest of the UK, Scottish buyers and sellers were more positive about house prices.

Almost one in three (29 percent) of Scottish house-hunters said they thought house prices would be higher in twelve months time, compared to only one in five (21 percent) across the rest of the UK.

Overall, people in Scotland expect prices to fall by 3 per cent over the next year, compared to people in the UK who expect prices to fall 5 per
cent in the same period.

One in ten people in Scotland thought house prices would not change at all.

Director of Nick Leeming commented: “Scotland has proved resilient in the face of the global credit crunch so far, with house price growth slowing but not showing the same decline as the rest of the UK.

“This is reflected in the elevated confidence of house-hunters in Scotland. This is possibly due to the fact that house prices are much lower in Scotland – around 25% lower in the first quarter of this year 2008 – which means they have a smaller distance to fall anyway, and are more affordable in relative terms than the rest of the UK.”

The confidence displayed by Scottish house-hunters has also been reflected within the industry. Fifty-nine percent of Scottish agents polled said they were confident they wouldn’t see the same house price falls as in the UK.

Nick Leeming said: “Local agents are telling us they don’t expect the market to follow the UK in terms of falling house prices. In fact they are currently seeing a lot of buyers looking for an investment as the private rented sector booms on the back of high tenant demand.”

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