Scotland replaced Northern Ireland at the foot of the UK regional house price table in the third quarter of this year, as experts warned that UK house prices have seen a “clear cooling” since Britain opted to leave the European Union.
Meanwhile, the gap between property prices in Scotland and the UK as a whole was the widest recorded since the start of 2005. The standardised UK property price dropped to £214,140 between June and September, from £215,168 in the previous quarter. Scotland is one of only five UK regions where average house prices remain weaker than the 2007-2008 pre-recession peaks, with Wales and all three regions in the North of England also witnessing lower prices. Chris Williamson, chief business economist at IHS Markit said: “The UK’s vote to leave the EU has been accompanied by a clear cooling of the housing market. Average prices fell in the three months to September, in marked contrast to the robust growth seen in the first half of the year, registering the first quarterly decline in four years.”
He added: “Any negative impact from Brexit worries will be mitigated by strong fundamentals, including a shortage of housing, high employment and record low interest rates, but IHS Markit’s base scenario is one whereby prices fall by three per cent in 2017.”