Scotland’s property market can expect a house price boost of 2% due to increased buyer confidence and political stability, according to a leading property firm.
Rob McGregor, Associate Director of Property Sales believes conditions for buyers and sellers – in particular first time buyers – will be more positive in 2020 with a clear majority government in control.
Early indications suggest demand is growing as the firm’s conveyancing team has seen an unprecedented level of transactions in the first weeks of the year.
Rob said: “There was a definite nervousness about the economy last year – people are less likely to buy in an uncertain market so many buyers waited around to see what would happen with the election and Brexit.
“While Brexit is still a large unknown, there is some security with a majority government in power. The pent-up demand from those holding off until now is likely to translate into increased levels of buying over the next six months.
“This demand, coupled with an ongoing shortage in the supply of houses for sale, will also continue to support high property prices – especially for first-time buyers and those looking to buy family homes.”
Although Rob predicts house prices to increase by 2% in 2020, matching the forecasts of the Royal Institute of Chartered Surveyors, he believes a secure job market and mortgage rates will offset some concerns around affordability.
Rob added: “We can expect an increase in property values, particularly for first time buyers and family homes, but this will be helped by the stable jobs market, longer-term mortgages and lower market mortgage rates.
“It’s positive to see a refreshed demand from buyers so early in January – our conveyancing team has been inundated with interest and requests from people eager to start their year in new surroundings.”
With rising house prices will come rising rent prices, with rents expected to increase at a faster rate. This will be more pronounced in certain areas of Edinburgh due to the lack of supply for rental properties.
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