Edinburgh house prices set to rise by 22 per cent in coming five years
House prices in Edinburgh and Glasgow are predicted to rise by 22 per cent and 17 per cent respectively in the coming five years, according to figures from property consultancy JLL.
Growth of 10 per cent is expected across Scotland – lower than the forecast of 12 per cent for the UK as whole.
JLL’s residential forecast for Scotland shows house prices have risen at an annual rate of 2.9 per cent for the past five years.
Edinburgh’s predicted price increase of 4.1 per cent per annum is among the highest in the UK while the predicted increase in rents of 3.3 per cent is far higher than that forecast for the UK as whole.
As for Glasgow, a focus on build for sale has changed to one of build to rent. City centre sales are expected to rise by by an average of 3.2 per cent per annum while rents are due to increase at an annual rate of 3.2 per cent.
Neil Chegwidden, of JLL residential research, said: “A range of factors are colluding to deliver more moderate house price growth across the UK, including Scotland, over the next five to ten years.
“However, despite the intrusion of Brexit, we believe this transition will provide a more stable housing market. This newhousingparadigmshould be embraced and welcomed.
“It is good for government, the economy, buyers, sellers and industry participants. But it will also take some getting used to. House price growth averaging 2.5 per cent per annum in the UK for the next five years will not excite investors or homeowners, but will lay the foundations for a less volatile housing market.”