03 Aug 2019
Housing market Scotland
House Price Forecast index by Really Moving state the Scotland real estate market are expected to gain in summer months from July to September. It is believed the price can surge in July – August, where the regional markets may show resilience. Northern Ireland forecasts the strongest growth and North-East valuation may readjust. UK’s EU departure has been postponed till October and buyers seeking appropriate property want to wait to see the impact to avoid complications arising out of change in market circumstances during Brexit.
Scotland housing prices
In the last few months, the average price of property in Scotland grew. The data finds the average price in May 2019 was up 2.8 percent as compared to the last year same month, and in England, the gain was 1 percent, while, in the UK, it was 1.2 percent.
Scotland property market
Property market analysts state the gap between Scottish and English property is growing, where Scotland property are having smooth growth. In Scotland, the markets are strong and the semi-detached homes had the biggest growth in prices, whereas, some of the most expensive property can be found in Edinburg. The sales volume grew 5% in March 2019 as compared to the same month last year, except Aberdeen where the prices are declining fast.
The average home price in England has been constrained by sharply falling property price in London. One of the biggest drops in London home price was reported in August 2009 of 7 percent, which was the phase of the meltdown in the banking systems. Brexit uncertainty has been playing a role where a number of buyers are in dark about the movement of trends in the market during the post-Brexit session. Prices are falling in the North East and home price in London has fallen at a faster pace since 2009. Now the prices are almost 4.4 percent low as compared to May last year - as per the records of ONS. Despite the slowdown, the housing market remains unaffordable to average buyers as the rates accelerated very fast in the last decade in the post-2009 phase. Reports find a number of young workers and low-income buyers are still finding the prices unreachable in most part of the country, not just London or South East.
The constructions of new homes have started to decline. New home construction dipped 1 percent in June when a 6.1 percent drop in permits was reported. Some analysts state the intensification of Trade war and the Brexit repercussions hit global growth and affected the economies that were highly dependent on foreign demands. The pound has been under selling pressure as it hit a 27-month low against the dollar, while, IMF claims dollar is already overvalued. The ONS said heightened uncertainty and decline in confidence may hit investment and increase trade barriers. The government budget watchdog states the stock markets may fall 5% and pound may plunge 10% due to current unpredictability, which may result in contraction of GDP by 2% by the end of 2020.
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