What does the future hold for Scottish house prices?

Scotland’s housing market may have shaken off its reputation as an underperformer compared to the UK in recent years, but its longer term outlook is not so promising. Unfavourable demographics and a heavy reliance on the deteriorating public sector and the oil and gas sector will mean that, over the next decade, Scottish house prices rise, on average, by about 0.3% less than the UK each year. This means that, if we are right in thinking that UK house prices will increase by about 2.5% per annum, Scottish house prices will rise by about 2.2% per annum.