The Scottish housing market is around two years away from recovering, due to a new report published by Savills this month. It predicted that house prices in Scotland will fall by 2.5 per cent, before stabilising in 2012 and coming out strong by 2015.
House prices plunged by more than half in Scotland over the past three years but opinions remain optimistic. Savills have put this expected prolonged recovery down to squeezed household incomes, public-sector cuts and restrictions on mortgages, which continue to keep demand low.
Faisal Choudhry, associate director for residential research at Savills, expects the recovery to be evident first in Edinburgh, Glasgow and their commuter belt areas. He said: “We are now standing at the base point of the next housing market recovery where we expect to see a steady, moderate and sustainable increase in transaction numbers and prices. This recovery is being kick-started by cash rich buyers, a growing number of whom are from London and the Home Counties, and also from overseas.”
He continued: “Edinburgh in particular is seen as the market most likely to lead the Scottish recovery during the next housing market cycle, given its wealth of equity rich housing stock, strong employment base and increasing political influence.”