Market Predictions in Housing

House prices will grow 6% in Scotland in 2008, according to Martin Watt, Local Director for County Homesearch Company, Scotland, who also believes that interest rates will fall 0.25% by June

Hotspots
Property values are still ruled by location. Traditional flats in Edinburgh have been gaining value steadily - what looked like too much over the asking price in spring 2007 looks good value now. Properties near to the proposed new Waverley railway line from the Scottish Borders to Edinburgh are likely to increase in value over the next two to three years.

“Demand for popular Scottish properties (such as Edinburgh Georgian town houses) in prime locations will continue,” says Watt, “as they remain in short supply. In contrast, modern two bedroom flats located in some of Scotland’s city centres are becoming commonplace and are suffering from oversupply. While they have proved popular with buy-to-let investors, they do not offer the lifestyle living the majority of our clients are demanding and as a result, their popularity looks set to fall further in 2008.

“Rural properties are always in demand, with buyers drawn towards the peace and quiet of living in the country. A good sized country home with a large garden is becoming increasingly popular, overtaking the traditional country cottage. Larger, more spacious country homes offer their owners increased space, with many buyers now looking for properties where they can set up a home office to avoid commuting for the full five day week.

“Undeniably there has been a slowdown in the Scottish market, but good properties are still achieving well over the asking price. Over recent months there has been an increase in fixed prices on the market, with some sellers accepting offers close to the fixed price to ensure a quick sale. However, while good properties may take a little longer to sell in 2008, provided sellers can hold their nerve, they should still be able to achieve the price they want.

“I would expect prices to hold steady over the winter, with a slight rise in the spring. I have no doubt that sought after Edinburgh properties will maintain their popularity and their value in 2008. Properties rarely come up for sale in some streets (e.g. Ann Street or Heriot Row) and buyers know they have to pay handsomely to secure such a sought after home.”