The effect of the 'No' vote on house prices

Estate agents expect busy Scottish property market for the rest of 2014

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The Independent Online

Following warnings of problems in the property market if the 'Yes' vote won the Scottish referendum, the 'No' vote has been described as 'an end to uncertainty'.

"The certainty provided by a ‘No’ vote will allow the property market to return to more normal trading conditions," said Ran Morgan, Head of Knight Frank Scotland.

"The fundamentals are in place to ensure a full recovery, led by the key cities of Edinburgh, Aberdeen, Glasgow and rural counties within commuting distance of large employment hubs. We expect we will be very busy in the coming months as vendors and buyers, many of whom have put off making a decision to buy or sell a property in Scotland due to the referendum, return to the market. This will lead to an increase in the number of transactions at all levels of the market. "

Charles Dudgeon, joint head of Savills Scotland, agreed that the result signalled 'an end to the uncertainty which has suppressed consumer confidence in recent months'. 

"The Scottish market, driven by domestic and overseas buyers, is now poised for growth," he said. "The debate has held back the market, particularly reducing the number of buyers from south of the border moving north. We now anticipate the return of London super-commuters, attracted by the comparative good value on offer in Scotland."

Dorian Gonsalves, Director of Commercial for renting specialists Belvoir, added that the result of the Scottish referendum would have far-reaching repercussions for the rental market.

"In recent months we have seen anecdotal evidence that English and foreign landlords who own properties in Scotland have been questioning whether or not they would hold on to these properties if the Yes Campaign had been a success," he said.

"As a landlord with properties in Scotland myself, I can confirm that this is certainly something that had crossed my mind. There were many reasons for this, including the possibility of a different currency, tax rules and the complexity of two different legal systems.

If landlords had decided to sell their properties as a result of a vote for Scottish independence this would have reduced supply at a time when rents are already on the increase. On behalf of tenants in Scotland I am pleased that the uncertainty has now passed and hopefully landlords will feel more confident about increasing their portfolios."

Jeremy Blackburn, Head of Policy and Parliamentary Affairs at RICS emphasised that RICS apolitical and had remained neutral throughout the independence debate.

"The decision was of course for the Scottish people to make and this has now happened," he said. "Change on this scale always brings an element of uncertainty and ministers at Holyrood and Westminster now need to come together to provide clarity, reassurance and direction.

"During the debate UK party leaders pledged further devolution of powers to the Scottish Government. We call on all political parties to quickly agree on a robust devolution settlement, providing a concise and comprehensive timeline for implementation. Given the importance of property investment and development in the Scottish economy, we look forward to working with Scottish Government during the transfer of powers."