So as the nation went to the polls yesterday to vote Brexit or Bremain, it had been said that the result would be close and we have all been expecting the results with interest. And now, a historic decision has been made and we as a nation have voted to leave the European Union. With many major industries still reeling from the decision, people are left questioning how this decision will affect our many different markets. And for home owners, the question on everyone’s lips is: Now we’ve left the EU, what will happen to the property market?
We believe there are enough signs to point to a strong property market in Scotland and a very slow adjustment to the new political context.
As Britain was the EU’s fourth largest economy, the UK’s decision to leave, although historically significant, will only transform the current context slowly over the next 2 years, as that is how long the process to break ties with the European Union will take.
The Scottish property market has shown no sign of slowing down in the campaign months and that is a sign of confidence that the local market is stable enough to overcome the uncertainty of Brexit.
And according to recent figures from Shelter (detailed here) today’s average house prices have already rocketed past the 200k mark – sitting at £220,000. And based on the continually rising trend, it is reckoned that by 2020, the average UK house price will have jumped by another £50,000 to £270,000.
A lot of major investment in properties in prime hotspots, such as London have seen a slow down in recent months with foreign investors waiting for a clear decision – especially at the top end of the market, but we have seen a lot less volatility on the local Scottish market, with prices constantly rising and growth being fuelled by affordable mortgages and an ever growing demand.
We will be watching the market closely and measure the impact of Brexit, as the full scale of the leave vote on the property market will not be fully known until we see how it affects the UK economy generally.
If you would like specialist advice before buying or selling a property in Scotland in the current context, contact your Clyde Property branch today – we are available 7 days a week until 8pm.
