Scotland to be housing hot spot in 2008, says RICS

The Royal Institution of Chartered Surveyors is predicting that the Scottish housing market will experience sustained growth in 2008.

Speaking at the Mortgage Business Expo Glasgow, David Stubbs, senior economist at the RICS, said that while the housing market was slowing across the UK he expected the Scottish market to continue outstripping other UK regions.

He cited the falling levels of first-time buyers on interest-only deals as one of the main drivers in the market alongside a growing structural shift in the culture of homeownership which has risen greatly in Scotland compared with the rest of the UK.

Outlining trends in the Scottish housing market over the last few years, Stubbs said that Scotland has been one of the best performing regions in the UK, behind only the North East of England and Northern Ireland.

He says: “There are strong fundamentals still driving the Scottish housing market which is being fuelled by healthy demand and continued economic growth through rising employment levels.

“While it is certainly not immune to current UK market conditions there are isolated factors such as the low levels of interest-only deals and the increase in homeownership levels which indicate sustainability going forward.”