27 Aug 2021
House prices could increase by 22% over the next five years, according to the independent body which produces Scotland’s economic forecasts.
The Scottish Fiscal Commission has published its latest official forecasts setting out how Scotland’s economy is recovering from the pandemic.
Its new report has revised up its projections for Scotland’s property market, following a quicker than expected recovery from Covid-19.
The average cost of buying a home in Scotland currently sits at £201,000, according to the commission, a 7.5% increase from the £187,000 average price recorded last year.
Looking forward, the commission says it now expects prices to increase to £246,000 by 2027, a jump of 22% from today.
The surprising pace of Scotland’s economic recovery is being listed as the main factor behind the change, alongside the expectation that wages will rise between 3% and 5% over the coming years.
Alan Cumming, National Estate Agency Director at Aberdein Considine, said the figures make good reading for those either on the property ladder, or thinking of buying in the autumn or spring.
He said: “If you dig into the report, it outlines an expectation that prices will remain relatively flat until March next year, before a sharp uplift, with prices rising to £215,000 in 2023/24, then £234,000 in 2025/26 and £246,000 in 2026/27.
“Based on those figures, the next nine months look like a real window of opportunity for buyers looking to either get on the market, or move up the property ladder, and benefit from potential price inflation over the next five years.
“Mortgage lending is good, interest rates remain low and there are good deals to be had in many parts of the country. It’s a rare to have all these factors in favour of buyers at the same time.”
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