2022 Scottish Property Trend Predictions

After the year the Scottish property industry has had, you’d be forgiven for assuming professionals across the housing market will be downing tools to enjoy some much-needed rest this festive season. After all, what a year it’s been.

2021 has, without a doubt, been one of the most buoyant years within the Scottish housing market, with record sale prices achieved. This welcomed sales boom has been evident across every region and the average house price in Scotland has increased by 8.5% in the past 12 months with selling times in under two weeks in certain locations, such as Edinburgh.

Industry experts Zoopla predict that house prices will slow to 3% in 2022. Whilst the market will certainly normalise in 2022, the Scottish market is set to continue to thrive — albeit to a lesser extent.

So, Scotland’s property professionals will be going into 2022 full steam ahead. And most likely working throughout the festive season ahead of January where there is set to be an influx of newly energised buyers following the festive break. Indeed, here at the Home Report Company we’ve already been inundated with December and January Home Report requests from sellers ready for their next move.

A NEW NORMAL

With analysis revealing that housing growth price will slow in 2022 to around 3%, I forecast a new normal for the Scottish housing market: a less frenetic, fast-paced market with serious buyers and sellers. The race for space is set to continue as people look for more outdoor space and a different pace of life, whilst others look to trade up the housing ladder. Then there are first time buyers.

FIRST TIME BUYERS

Smaller properties and one-bedroom flats in central areas are likely to see an increase in demand following the re-introduction of government-guaranteed 95% LTV mortgages which has made homeownership for first time buyers more accessible. My advice to flat owners looking to sell is to list sooner rather than later. Affordable city centre areas and locations with good commuter links will be in hot demand.

LOW INTEREST RATES

Whether you’re making that first step on the ladder, moving up or moving on, with the prospect of increased mortgage rates, I anticipate strong buyer demand throughout Scotland in early 2022 as buyers make the most of the current low-interest rates.

With some houses going for as much as 40% overvaluation in Scotland’s most sought-after areas, some buyers are rightly waiting for a price drop. However, I would advise considering taking the leap early to make the most of the ultra-low mortgage rates that are available now.

SCOTTISH HOUSING PRICES

I would anticipate a continuation of house price growth across key areas in Edinburgh, Glasgow, Stirling, Aberdeen and Fife with a slight cooling of the market compared to 2021. But still expect quick sales, strong demand and healthy prices as the imbalance of supply versus demand continues. Like many of my peers, I see no end to offers well in excess of valuation throughout 2022.

GET A HOME REPORT FROM HOME REPORT COMPANY

With the Scottish property market conditions looking positive, it’s always worth being prepared as a seller or a buyer. Getting a Home Report early is the ideal way to prepare and avoid any sudden surprises. Read our expert guide to learn more about Home Reports and what documents are included.

If you have any questions about buying or selling property or would like to ask us for more information give us a call 0131 608 0175 or email enquiries@homereportcompany.co.uk

Originally published at https://www.homereportcompany.co.uk on December 20, 2021.