House prices in Scotland will increase by as much as 12% in 2006, according to new research from Strutt & Parker.
The findings fly in the face of widely held concerns that the residential bubble has or is about to burst.
The report from Strutt’s Scottish House and Edinburgh Residential Reviews, released this month, predicts that country house prices will rise by 12%, with values in Edinburgh seeing a 5% lift.
Andrew Rettie, partner, at Strutt’s Edinburgh office, said: “Our forecast for 2006 mirrors and is grown from an extremely successful 2005.
“Although some people suggest a downturn in the market, we anticipate a continuation of the upsurge.
“The uncertainty of a General Election, which we had in spring 2005, can have repercussions as can a downturn in interest from buyers living outside Scotland.
“However, we start 2006 with a settled economy, not to be by affected by an Election campaign, and city bonuses at record levels which bodes well for the property market.”
Strutt’s figures of buyers’ interest in country homes show 50% originating from England, 44% from within Scotland and 6% from overseas.
Rettie added: “The international interest in Scottish property is at a high level and is yet another reason why the property market and prices will continue to rise.”
References: EGi News 12/01/06
