Scottish house prices to rise 14 per cent if no-deal Brexit is averted
Average house prices in Scotland will grow by 14 per cent to reach £170,000 by 2022 if a no-deal Brexit is avoided, according to new analysis from PwC.
If a no-deal Brexit does not take place, house prices are expected to grow 1.7 per cent this year, rising to 2.4 per cent next year and a further 4.7 per cent in 2021 and 2022, according to the latest UK Economic Outlook.
Stewart Wilson, head of government and public sector for PwC in Scotland, said: “House price growth in Scotland looks set to remain steady over the next four years, though this is influenced in real terms by inflation and wage-growth levels.
“For homeowners looking to move, achieving a higher selling price can help with mortgage terms, however faster growth presents a challenge to first-time buyers looking to make that important first step onto the property ladder.”
Mr Wilson added: “Consumer spending - supported by recent rises in real incomes - has continued to drive the Scottish economy, but we may be in for something of a bumpy ride this year given we are still unclear on when Brexit will happen, and under what terms.
“Our growth projection for Scotland of 1.6 per cent is ahead of the UK’s 1.4 per cent. This highlights an increased resilience in Scotland, but it is one which will subside next year as we fall in line with the overall UK.”