ACCORDING to real estate adviser Savills, house prices in Scotland will outperform London and most other regions of the UK over the next five years.

While average UK house prices are expected to grow by 14%, and those for Greater London by 7%, Scottish house prices are forecast to increase by 17% by 2022.

The UK market is expected to slow as Brexit uncertainty weighs on sentiment, yet there is evidence that this trend is not being replicated north of the border. A return to UK house price growth is expected in 2019-20, assuming employment, wage and GDP growth swing back towards trend levels, though this will be tempered by interest rate rises.

Faisal Choudhry, Savills head of residential research in Scotland said: “After a period of sustained growth, the Greater London market appears to be reaching current limits of affordability. Political and economic uncertainty, linked to on-going Brexit negotiations, are likely to lead to small price falls in the UK capital over the next couple of years. The market is likely to stabilise by 2020 and we anticipate 7% five year growth in Greater London and 14% for the UK as whole by 2022, though the prime central London will outperform.

“The Scottish market has tended to be more subdued than other parts of the UK, particularly London. However, we are entering a new period with most Scottish cities experiencing greater than average price increases due to a lack of supply and strong local economies. Not only are they likely to outperform the wider Scotland market over the next five years, but the UK as a whole. The exception to the rule is Aberdeen which is now stabilising following a period of price falls linked to the downturn in the energy sector.

“While uncertainty over what Brexit means for the UK economy, and how it will impact household finances, is acting as a drag on house prices, particularly in markets linked to London, the market in Scotland is revealing its resilience, with buyers appearing to be more used to political change," he speculated. "There is capacity for growth UK-wide, once consumers have greater clarity on Brexit, however we do not anticipate an over-heated market. Price increases will be constrained by interest rate rises and the corresponding ability to secure mortgage lending.”

Andrew Perratt, Savills head of residential in Scotland said: “We have undoubtedly seen the return of English buyers to the Scottish market, and in particular those from London who are attracted by the comparative value for money and quality of life north of the border. This has contributed to an improving market: it may have been a long time coming, but it’s currently the healthiest market in Scotland for a decade.”