Average house prices in Scotland predicted to rise 14% by 2022

16 July 2019, 08:14 | Updated: 16 July 2019, 08:15


Scotland's average house price will reach £170,000 by 2022 if a no-deal Brexit is avoided, economic forecasters have predicted.

PwC's latest UK Economic Outlook suggests the average price will hit the figure by 2022, a rise of 14% from 2018.

Assuming a no-deal Brexit does not take place, house prices are expected to grow 1.7% in 2019, rising to 2.4% in 2020 and to a further 4.7% through 2021 and 2022.

Examining wider economic growth, the outlook predicts strong growth for Scotland of 1.6% in 2019, compared to 1.4% for the UK.

However, this is expected to drop to 1.3% by 2020, in line with the UK as a whole.

The outlook also found Scotland is among the most affordable of the UK's nations and regions for private rent.

Affordable rents are generally considered as under 30% of annual income before deductions such as tax, and in Scotland this ranges from 15%-22% for key professions.

Police officers spend an average of 15% of their annual income on rent while primary teachers spend 18% and nurses and midwives spend 22%, researchers found.

Stewart Wilson, head of government and public sector for PwC in Scotland, said this could entice more key workers north of the border but stressed some areas such as Glasgow and Edinburgh would be more expensive than others.

Mr Wilson said: "House price growth in Scotland looks set to remain steady over the next four years, though this is influenced in real terms by inflation and wage-growth levels.

"For homeowners looking to move, achieving a higher selling price can help with mortgage terms, however faster growth presents a challenge to first-time buyers looking to make that important first step onto the property ladder."

He added: "Consumer spending - supported by recent rises in real incomes - has continued to drive the Scottish economy, but we may be in for something of a bumpy ride this year given we are still unclear on when Brexit will happen, and under what terms.

"Our growth projection for Scotland of 1.6% is ahead of the UK's 1.4%. This highlights an increased resilience in Scotland, but it is one which will subside next year as we fall in line with the overall UK."