-

Scotland

Economic and employment growth opportunities are driving up property prices in Scotland; the country is expecting a 5.88% average price increase by 2021.

This is the sixth highest increase across 12 UK regions.

Predicted Property Hotspots

Scotland offers cultural and employment hubs across its major cities, alongside abundant wilderness and beautiful vistas across the country.

The largest upwards increase in average house prices is expected to occur in the following four areas:

  1. East Renfrewshire
  2. East Dunbartonshire
  3. City of Edinburgh
  4. Stirling

The economic and employment growth opportunities in Scotland are pushing up house prices in many areas of the country. East Renfrewshire, East Dunbartonshire and Stirling all enjoy populations with high earnings, ranging from 6% to 28% higher than the UK national average. Edinburgh is expected to experience one of the highest levels of short to medium term employment growth in Scotland over the 2017-2021 period (growth of 2.8%), which will fuel additional demand for housing in the area. At the same time, the city is expected to see one of the highest population growth rates over the next five years at 4.5%, which will increase pressure on housing.

Business start-ups also place higher demand on housing, with Edinburgh experiencing the highest rate of start-ups per capita in Scotland (with nearly 88 businesses set up each year per 10,000 working age population) and Stirling (over 67 per 10,000 working age population) close behind.

Also putting pressure on house prices in Edinburgh and East Dunbartonshire is a high growth in private housing rentals. This indicates a likelihood of increasing demand for house prices in the area.

In East Renfrewshire, there is a high proportion of highly qualified residents in the region, with 53% of the population educated to degree level or higher. These qualifications are linked to higher potential earnings and a related upwards pressure on housing prices.

Investment Snapshot

  • Investors in Scotland own three properties on average. The average total value of a property portfolio in the region is £818,093
  • Across all UK respondents, one in 10 (11%) own property/properties in Scotland and over a third (39%) are being used for rental income
  • Over a third (36%) of investors in Scotland are planning to buy new property/ properties in the next three to five years
  • They are confident about their investment prospects – investors in Scotland expect the average value of the property / properties they own to increase by 8.1% over the next three to five years (compared to a national average of 8.0%).

Key findings

The Barclays UK Property Predictor reveals the areas across the UK where house prices and rental incomes are expected to rise. The research uses factors such as rental trends, employment levels and commuter behaviours, as well as a survey of high net worth individuals to understand where and why they plan to buy in the future.

News and insight

Connecting you to the latest insights, updates and trends