9% rise for Scottish house prices predicted
Tuesday, 27 Mar 2007 10:11
House prices in Scotland are predicted to rise nine per cent this year
There is "every indication" Scottish house prices will rise nine per cent over 2007, an estate agents forecasts.
The forecast from estate agent Knight Frank is based on new data showing property sales in Scotland in 2007 are already higher than over the same period last year.
House prices in Scotland will rise nine to ten per cent for the next nine months, well above the predicted six per cent for house prices across the UK.
"We expect the housing market in Scotland, to remain in robust health through the rest of 2007 outperforming the rest of the UK," commented John Coleman, Knight Frank head of residential sales, Scotland.
"Our figures to date have benefited from some notable sales already, but we still anticipate, particularly in the light of the decision to hold interest rates at 5.25 per cent last month, that the market will remain strong through the rest of the first half of 2007 with purchase activity standing at or above the ten year average."
Mr Coleman expects UK house price growth to be led by Northern Ireland as well as Scotland. The estate agent predicts house prices will rise ten per cent this year in Northern Ireland.
"Price growth in the UK will be constrained due to continuing affordability pressures. In most parts of the UK it is increasingly difficult for first time buyers to access the market, and price growth higher than one or two percentage points above wage inflation is unlikely.
"Should there be a further interest rate rise, we may yet see this anticipated growth cooling, although we would still expect the prime end of the market to remain buoyant."
Knight Frank UK housing market forecast
Region | Growth 2006 | Predicted growth 2007 |
| Northern Ireland | 25 | 10 per cent |
| Scotland | 15 per cent | 9 per cent |
| Greater London | 9 per cent | 8 per cent |
| East Anglia | 9 per cent | 7 per cent |
| South East | 8 per cent | 7 per cent |
| South West | 8 per cent | 6 per cent |
| Wales | 3 per cent | 5 per cent |
| East Midlands | 6 per cent | 4 per cent |
| North | 6 per cent | 4 per cent |
| North West | 7 per cent | 4 per cent |
| West Midlands | 7 per cent | 3 per cent |
| Yorkshire & Humber | 8 per cent | 2 per cent |
| UK | 9 per cent | 6 per cent |
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