Rettie and Co has predicted that Scotland’s residential market will remain subdued in 2017.
Last year saw Brexit uncertainty, the introduction of land and buildings transaction tax and tenancy reform put the brakes on a market in which the number of owner-occupiers has declined by 60% since 2005.
The firm has forecast a continued drop against a backdrop of an overall undersupply of housing and further expansion of the private rented sector.
Rettie and Co director of research and strategy, John Boyle, said: “The developing global financial crisis, punctuated by Brexit Britain and Trump’s New America, has significantly impacted what was always going to be a challenging year in the residential property market. When you add in our own Scotland-specific dynamics, including LBTT and tenancy reform, it is hard to forecast anything other than subdued conditions in 2017.”
Rettie and Co anticipates average house prices will rise by between 3% and 4% a year from 2019 and average rents will grow by 2% to 4% per annum.