Yes vote ‘could wipe thousands off Scottish house prices’

Zoopla has warned today that a Yes vote on Thursday could wipe thousands off the average house price in Scotland.

House prices in Scotland dropped 17.5% during the financial crisis and Zoopla warned that a repeat could wipe £31,000 off prices.

Over the last two years Scottish house prices have grown on average by 8.3% (£13,728) with the average Scottish home now standing at £177,599 – still 2.2% below their August 2008 peak.

Zoopla said that with a number of businesses intending to move south of the border in the event of a Yes vote, the supply of available properties could be increased, while demand would fall.

Further uncertainties following a Yes vote surrounding tax, currency and interest rates are also likely to impact negatively on house prices in Scotland, said the site.

Zoopla warned that mortgages could become harder to obtain, with a more limited choice of lenders, and higher interest rates could result. Home owners could be earning wages in a new currency but stuck with mortgages in sterling, which would leave them exposed to currency fluctuations.

Lawrence Hall of Zoopla said: “While the impact of the referendum on the Scottish and wider UK economy long-term is hard to predict and there are opposing views, a Yes vote would almost certainly have a detrimental effect on Scottish house prices in the short to medium term.”

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3 Comments

  1. Eric Walker

    I have taken huge interest in the referendum as my family are all Scottish. This warning from Zoopla may have an effect – but consider this. Whilst it may scare many with little equity, the vote has been given to people from the age 16 – students who are wondering how they will ever afford a home. Will this warning seem like a bad thing for the newly enfranchised? Just a thought.

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  2. Woodentop

    According to Mr Salmond this is scare mongering or put another way, has his head in a bucket of sand. Scotland should never have been given the opportunity to vote. All that has happened is Mr Salmond has divided his country folk and for some the wounds may never heal. All very sad and unnecessary.

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  3. Benay

    Any evidence to support your claims Lawrence or are you just making it up? I guess if you tweak the algorithm on the Zoopla random valuation generator you will be able to prove your point but I really can't imagine what has prompted you to think all this up. The population isn't going to change dramatically, wages won't change, rampant inflation won't be tolerated so how about giving some evidence to support your scaremonger lobbying.

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