Yes vote could wipe £31k from value of Scots homes

Experts have warned that Scottish independence could affect the value of Scots homes, seeing their value drop dramatically. Picture: TSPL

Zoopla, which is one of the UK’s biggest property websites, claimed that a victory for the independence campaign could reverse the hard-won gains of the recent housing market recovery in Scotland.

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Over the last two years, Scottish house prices have grown on average by 8.3 per cent - £13,728 - with the average home value north of the border now standing at £177,599.

The website warned that mortgages could become harder to obtain with a more limited choice of lenders and higher interest rates could result. It claimed uncertainty over the future currency in an independent Scotland could see homeowners could be earning wages in a new currency but stuck with mortgages in sterling - it said which would leave them exposed to currency fluctuations, struggling to pay their mortgage and plunged into negative equity.

“While the impact of the referendum on the Scottish and wider UK economy long-term is hard to predict and there are opposing views, a ‘Yes’ vote would almost certainly have a detrimental effect on Scottish house prices in the short to medium term,” said Lawrence Hall of Zoopla.

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“The uncertainties on employment, tax, currency, EU membership and interest rates will all play their part and if big business does head south with a ‘Yes’ vote Scotland will lose a significant piece of their service economy with nothing to replace it, leading to a greater supply and reduced demand for housing and a resultant drop in house prices.”

A string of large companies, including Royal Bank of Scotland and Lloyds Banking Group - which are credited with being a key driver of the housing market, particularly in Edinburgh - have warned they would move south in the event of independence.

Chief Secretary to the Treasury Danny Alexander said: “Homeowners in Scotland will be deeply worried by this news. Millions of Scots have worked hard to own their home, and many more aspire to do so. This is yet another example of how Salmond’s reckless drive to a separate Scotland would hit our pockets and household budgets.

“The housing market has been doing better in Scotland as part of the UK economic recovery, with over 2,000 families being assisted by the Help to Buy scheme. Separation looks to more and more people like a ‘help to lose’ scheme.”

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