The Scottish referendum is drawing closer, with the future of the UK hanging in the balance, and now leading estate agents are warning that a vote for independence could mean a drop in house prices on both sides of the Scotland-England border. I Am The Agent, one of the country’s foremost virtual agencies, with years of experience helping homeowners sell a property online, is joining the ranks of property experts forecasting a disruption in economic recovery and a more uncertain housing market, should Scotland vote ‘Yes’.
Online estate agent I Am The Agent and property portals like Rightmove and Zoopla all predict that Scottish independence could see house prices drop – Zoopla research found that referendum could knock as much as £31,000 off the average house price in Scotland. With the news that the Royal Bank of Scotland intends to relocate to London should independence come out on top, and speculation that pressure on interest rates could further disturb the market, experts are envisioning uncertain times throughout the property market.
Rebecca Peach, Director of I Am The Agent, says, “Even the debate around Scottish independence appears to be destabilising the property markets on both sides of the border – house prices could crash in Scotland with a vote for independence, and even those in the north of England, where many commute to Scotland, could see a knock-on effect of the ‘Yes’ vote. Many businesses in Scotland may decide to relocate to England, forcing up property prices in business hotspots, and the argument over currency could also leave thousands of Scots with less equity tied up in their homes.”
She adds, “It’s a worrying time for anyone looking to buy or sell a property – the uncertainty surrounding interest rates, funding for lenders and the overall economic forecast could be enough to put anyone off entering the market for the time being.”
House prices in Scotland crashed by 17.5% during the financial crisis of 2008 onwards, and many experts fear similar figures if the ‘Yes’ vote prevails in the referendum. The total value of Scottish housing stock would be reduced by £85bn – and many who have equity tied in up in Scottish property would be left out of pocket.
Conversely, prices in England could continue to rise if Scotland decides upon independence as the way forward. Business experts have predicted organisations will flock from Scotland due to the economic uncertainty of independence, which could mean that thousands of employees must follow their organisations south of the border, pushing up house prices in popular areas for thriving businesses. Many of the large financial providers are likely to settle in the capital, where the market is already at boiling point, while other large businesses are expected to move out of Glasgow and Edinburgh and into cities like Manchester and Birmingham.
Ms Peach continues: “Many of our rental properties are situated in Scotland, and a large number of our landlords and registered tenants in the area will be weighing up their options, should independence be the verdict. As leaders in the world of online letting and selling property online, and with a plethora of industry experts to hand, we’ll always be available to offer our advice to clients on both sides of the border, whatever the referendum brings.”