After the uncertainty of Brexit many people are questioning what will happen to the housing market. From the news we often see the comparisons in prices before and after the Brexit vote in areas such as London and Manchester which have reported a small fall or in some cases a “stall” in house prices. This could be putting people off buying in England but the Scottish market is showing a completely different trend.
Due to the house prices in Scottish cities not seeing the peak which they have done in the extremely expensive market of London or other affluent cities south of the border; we have seen continued growth in the market despite the uncertainty of Brexit.
This rise is predicted to continue into the next year as people look elsewhere due to the already inflated South East market. The report conducted by Rettie & Co found that there is large potential for further growth in the Scottish market as affordability remains competitive. This same affordability is also driving rental growth in the Scottish market, meaning a strong period for any potential investors. For the private sector is was found that the three areas which are seeing the highest gross rental yields are currently Glasgow (7.2%), Dundee (5.9%) and Aberdeen (5.6%). The report does also state that the uncertainty following Brexit will continue into 2017/2018 however they still anticipate a 3-4% average house price return and an average rental growth of 2-4 percent per annum with this prediction looking as far as the end of 2019.
Dr John Boyle, Rettie & Co’s director of research and strategy, said: “While there is undoubtedly uncertainty in the market regarding political issues, Scotland has strong underlying market fundamentals that are likely to support growth moving forward.
“We are seeing this on the coalface, as both UK and international investors are increasingly looking to do deals outside the South East of England and Scotland is particularly well positioned to take advantage of this trend.”
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