Scottish property market ‘remains buoyant’

Scottish house prices rose in May despite reports of a slowing economy north of the border, according to a new report.

The newly released Your Move Acadata monthly Scotland House Price Index for May 2016 shows that home prices bounced back in May, following a ‘blip’ in April, as property values continued their long recovery since last June.

The increase of 0.9% month-on-month recorded in May means that the average price of a property in Scotland stood at £172,119, but still slightly down on the level a year ago, when the average was £180,439.

The May figures – the latest available – give little indication as to what impact June’s vote to leave the EU will have on the market. Given the time between purchase decisions and completions, reaction to the vote may only begin to become clear after the summer.

“The Scottish market is starting to get back to some sense of normality, yet with Brexit, there could be some changes ahead. The next few months are going to be interesting, but thus far the sentiment is very much business as usual, with the market remaining buoyant,” said Christine Campbell, Your Move managing director in Scotland.

However, a separate report from accountancy firm PwC suggests that house prices in Scotland look set to fall in the coming months amid an economic slowdown.

PwC had forecast 1.8% growth in their March report, which has now been revised down to 1.3% post Brexit as it anticipates a slowdown in business investment from abroad, and although the rate of growth is set to decline further, it is not expected to drop below 0.3%, helping the country avoid a recession.