Scottish property to avoid 2008 slump

Friday, 18 January 2008 11:40 AM

Property in Scotland is likely to avoid the moderation in house prices analysts have been predicting for the UK as a whole during 2008.

That is the view of analysts Allied Surveyors, which argues homes north of the border were likely to see price increases of between five and seven per cent over the next year.

"I think we are going to see some steady growth this year - we're going to be reasonably well protected from the downturn which is obviously affecting everywhere else in the country outside of central London," said Grant Robertson, a director of Allied Surveyors.

Research earlier this week from the Royal Institution of Chartered Surveyors (Rics) found Scotland was the only region of the UK to experience price increases in December 2007, suggesting the market is insulated from wider concerns.

A lack of supply is a driving factor in many areas according to Allied Surveyors.

"I think we will see more growth where the Scottish government is failing to provide sufficient land to meet supply - particularly good quality city suburbs," continued Mr Robertson.

"Aberdeen is a good example of somewhere where there are long-term plans to release land for housing development, but at the moment there's almost no new housing available."

The findings concur with those of Halifax Estate Agents, which included four Scottish towns in a list of potential property hotspots for 2008.

Longer-term issues have also allowed Scotland to maintain its robust market.

"I think the most important factor remains the affordability that we have in Scotland; average earning against average borrowings remain steadfastly below the national average.

"Our cousins down south tend to borrow proportionally far higher against their income," concluded Mr Robertson.

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