Brexit clarity needed to calm house price worries
DESPITE the robust nature of the property market in 2018, research for Aberdein Considine’s Property Monitor has revealed that the lack of clarity on Brexit, as well as property tax policies, are affecting both the levels of confidence among consumers and property buying decisions.
Having said that, the Scots housing market once again proved its resilience in the face of both domestic and international political issues, with sales breaching the £18billion barrier in 2018.
A survey of more than 1000 individuals in Scotland, the biggest since the firm began publishing the Property Monitor at the start of 2017, found that 50 per cent of those asked said they anticipate a decrease in the value of their home post-Brexit. This is a strong indication of what appears to be diminishing confidence in the UK Government’s attempts to secure a positive Brexit outcome. Only three per cent believed that Brexit would increase house values.
When asked if the Additional Dwelling Tax would discourage them from buying an additional property in Scotland, 52 per cent agreed that it would, up from 45 per cent in the third quarter.
The Scottish Government announced in its December budget that this tax would rise from three to four per cent.
The lack of stock coming to the market, once a feature of the biggest cities, is now beginning to filter through to other parts of the country, with more provincial areas experiencing rapidly rising prices. The average cost of a home in Scotland has risen 3.3 per cent to £174,290.
Aberdein Considine managing partner Jacqueline Law remained optimistic about the year ahead but cautioned against unqualified optimism.
She said: “These figures demonstrate the market has, to a large degree, recovered from the difficult days of the financial crash but we cannot ignore the uncertainty Brexit presents.
“Whatever the outcome, families and individuals still need homes and properties will continue to be bought, sold and rented.
“Homeowners and businesses could definitely benefit from a clearer understanding about what the months and years ahead have in store – and hopefully the next few weeks will bring some much needed clarity.”