Why Brexit Doesn’t Need to Mean Bleak: The Scottish Housing Market
With uncertainty about the countries future rife, official governing body reports and spokespeople were quick to warn the country about the seemingly catastrophic effects of Britans exit from the EU. One specific area of interest for those interested in the long-term effects of Brexit was the UK housing market which, according to predictions, was projected to suffer significantly. Locally, the Scottish housing market was perceived to be destined for a similar fate with diminishing house prices and a decreasing number of people entering the property ladder year on year.
Since the deciding results of the BREXIT referendum in June 2016, it is true the that the Scottish housing market has suffered significantly as a result. Some figures report a fall in property sales by as much as much as 36%.
Despite the seemingly bleak outlook of BREXIT, all is not lost in the Scottish housing market. Recent figures released by the BBC suggest the market is currently benefitting from an 11 year high in relation to the average house price with the average cost of a home in Scotland reaching as much as £178,991. This 2.2% increase sparks welcome relief for those in the market as the industry appears to be taking the first steps in much needed self-repair. Further highlights of the report stated that Edinburgh accounted for most of the high value property in the market whilst Glasgow boasted the most sales.
Furthering the findings of this report, an earlier study by Your Move Scotland praised Glasgow as securing the most sustainable growth, particularly in the rental sector. On a month to month basis, Glasgow and Clyde reported a rent increase of as much as 1.9% from April- May. Yields for landlords across Scotland promoted a similar, brighter picture at their highest since November.
Regardless of the outcome of BREXIT negotiations, one thing is clear: the Scottish property market is, without a doubt one, of the most resilient of its kind. It is true that the market has suffered and will indeed continue to be impacted upon by the ill effects of the BREXIT referendum, but recent figures suggest the market can promote and sustain considerable house prices and growth.