Scotland’s housing market is bucking the UK-wide trend, with activity continuing to grow even as other regions experience a slowdown, according to a recent report. This resilience highlights the unique factors driving property demand north of the border, from competitive pricing to a growing preference for rural and semi-rural living.
Experts suggest that Scotland’s market benefits from a combination of affordability and lifestyle changes accelerated by the pandemic. Unlike in many parts of England, where soaring house prices have pushed properties out of reach for first-time buyers, Scotland offers a broader range of options. Data from the Herald Scotland shows that this has kept buyer interest strong, particularly in areas outside major cities like Glasgow and Edinburgh.
“Scotland’s housing market has shown remarkable adaptability,” says Dr. Fiona McAllister, a housing economist at the University of Strathclyde. “The shift towards remote working has led to increased demand in regions like the Highlands and the Borders, where buyers can get more space for their money while still staying connected to urban centres.”
This trend is further supported by government policies, such as the Scottish Government’s First Home Fund, which has helped first-time buyers with deposits. Additionally, the Land and Buildings Transaction Tax (LBTT) holiday, though now ended, provided a temporary boost to market activity earlier in 2023.
While the rest of the UK grapples with rising interest rates and economic uncertainty, Scotland’s market remains relatively buoyant. However, experts caution that challenges remain, particularly around supply. “The demand is there, but we need to ensure that the supply of affordable housing keeps pace,” adds McAllister. “Without this, we risk seeing price inflation that could erode Scotland’s competitive advantage.”
For those considering entering the market, now may be an opportune time. With competitive mortgage rates still available and a diverse range of properties on offer, Scotland’s housing market continues to present attractive options for buyers. However, it’s essential to act decisively and seek professional advice to navigate the current landscape effectively.
