Modest house price gains for 2019, says Rettie & Co

John Boyle, Rettie & Co's director of research and strategy. Picture: Contributed
John Boyle, Rettie & Co's director of research and strategy. Picture: Contributed
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Rettie & Co, one of Scotland’s best known property agencies, is forecasting a relatively positive Scottish housing market in 2019.

Pointing to fundamentals including demand, demographic pressure and the economic outlook, experts at the firm forecast an average increase of 1.5 per cent in prices over the course of the year.

However, that would mark a slowdown on the 3.5 per cent that has been flagged for the year just past. Rettie’s projection for 2018 compares with official figures that have Scotland’s average house price up by 3.1 per cent for the year to October, compared with the previous 12-month period.

John Boyle, Rettie & Co’s director of research and strategy, said: “Edinburgh remains on the up, reached record rental values in 2018 and is ranked as one of the most liveable cities in the world.

“Glasgow has seen a number of exciting new investment announcements, including Barclays’ new business hub and planning being granted on two major build-to-rent schemes.”

He added: “The V&A opening in Dundee has helped the city to raise its international profile and placed it 15th on National Geographic’s must visit places in the world in 2019. Even Aberdeen, with its beleaguered oil sector, has seen its housing market stabilise.”

On a negative note, the firm said the recent increase in Additional Dwelling Supplement (ADS) from 3 per cent to 4 per cent has not been welcomed, with private landlords responsible for housing more than 360,000 Scottish households, equivalent to 15 per cent of the population, rising to 19 per cent in Glasgow and 23 per cent in Edinburgh.

While institutional investment in the form of build-to-rent is “finally beginning to make exciting headway in Scotland”, Rettie & Co notes that the private landlord remains the mainstay of the nation’s housing sector.