Given the political turmoil that has occurred across the British Isles over the last few years, investment into these areas has become questionable. Is it worth your money to invest in areas with a high degree of political instability that could have adverse effects on the price of your property? Having a deeper understanding of the region will help inform your decision.
A report by the PwC claimed that the uncertainty caused by Brexit is having a negative impact on the Scottish economy which is having a knock-on impact to the housing market. In their report, PwC identified a year-on-year decline in house purchases, with a further growth slowdown in house price growth between now and 2020 being identified.
However, when looking at official figures in relation to the rest of the UK, there are many positives to be seen; in the first few months of 2017, Scotland has not experienced the same level of slow down as the rest of the United Kingdom. If you look at May 2017, the average price of a property in Scotland was £175,000 which represented a 3% increase on 2016. This has been supported by high demand, especially from first-time buyers, combined with tight supply. Christine Campbell, Your Move managing director in Scotland, claimed that after a surge in April, Scotland has returned to its long-term pattern of modest, but fairly steady price rises. That hides wildly different fortunes in its various areas, though, and price increases are heavily dependent on a few key areas. This steady increase is encouraging, it is far more sustainable than rapid growth and paints a more realistic picture for future returns. Indeed, this a view supported by Charles McCosh, letting and investments valuer at Rettie & Co, who has noted that “a lot of English investors are looking at Scotland now. A lack of stock on the sales market means people are looking to rent instead”; claiming that this has resulted in increasing investment into one and two-bedroom flats in Edinburgh.
If Scotland seems intriguing and you are keen to expand your property portfolio, we recommend having a look at Arthur to streamline the property management service; our software is second to none. Arthur property management software improves the lives of property managers, by giving them control over all aspects of their portfolio from their computer, tablet or mobile phone. Our app brings landlords, tenants, contractors, agents and owners together, in a single user interface, which makes problem solving easy, from wherever you are in the world. The Arthur software is guaranteed to help you get your property portfolio in order, no matter what size.
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Written by Jafar Tabaqchali of Arthur online