Scotland’s property market continues to outpace the rest of the UK in the first quarter of 2007. According to new figures from Knight Frank, more Scottish houses have sold in the first few months of this year than over the equivalent period in 2006 and prices north of the border are growing rapidly. Agents predict residential prices in Scotland will increase by 9-10% for the next 9 months, trumping the UK average forecast of 6%.
John Coleman, Knight Frank’s Head of Residential Sales in Scotland said: ‘We expect the housing market in Scotland to remain in robust health through the rest of 2007 outperforming the rest of the UK which is expected to stand at 6% by the end of this year – down from an estimated 9% at the end of 2006’.
The Bank of England’s decision to hold interest rates at 5.25% last month has helped the Scottish housing market remain strong, according to Knight Frank. Purchase activity in Scotland stands above the 10 year average, prompting agents to forecast a strong market for the remainder of 2007 ? even if there is another interest rate rise. ‘Should there be a further interest rate rise, we may yet see this anticipated growth cooling, although we would still expect the prime end of the market to remain buoyant,’ explained Mr Coleman.