SOARING property prices in Glasgow’s suburbs are set to contribute to an average increase in property prices of six per cent over the next five years, according to research from Barclays.
Much higher increases are expected in affluent areas on the outskirts of Glasgow, with prices in Edinburgh and Stirling also forecast to rise rapidly. The Barclay’s UK Property Predictor said a six per cent hike would take the average property value in Scotland to almost £180,000 by 2021.
However, East Renfrewshire prices are expected to rise by almost a quarter (23.8 per cent) while East Dunbartonshire property owners can expect a 22.5 per cent increase. In Edinburgh the predicted rise is 20.2 per cent and it is 19.1 per cent in Stirling.
The price prediction tool placed Scotland fifth in terms of UK “regions”, behind London (11.9 per cent), eastern England (9.4 per cent), the south-east (8.7 per cent) and the Midlands (6.3 per cent).
Barclays said factors expected to drive higher property prices are high employment rates, growth in the private housing market and an increase in rates of average earnings.
The research uses factors including rental trends, employment and commuter behaviour as well as current house prices to identify property hotspots.
The bank said a combination of highly-regarded schools and good commuter access were a factor in East Renfrewshire and East Dunbartonshire, while a high population growth rate in Edinburgh is expected to put pressure on property prices. Stirling is valued for its location and history but is also expected to benefit from economic and employment growth, including a City Deal focusing on creating a digital district, city park and regeneration of the harbour and River Forth.
The project is predicted to create 3,000 jobs and increase tourism by 25 per cent to turn the city into a digital technology, food and drink hub.
The research questioned high net worth investors from across the UK to reveal where and why they plan to buy property in the future.
This showed investors in Scotland own three properties on average, taking the average total value of a property portfolio in Scotland to £818,093.
Calum Brewster, of Barclay’s north region, said there was increasing confidence among property investors in Scotland.
He added: “It Is also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the south of England into Scotland, with economic growth and employment opportunity fuelling growth in hotspots across the UK.”
However housing and homelessness charity Shelter Scotland said there were reasons to be concerned about rising property prices. Adam Lang, head of policy said: "Rocketing house prices in Scotland mean that for far too many people, the ambition of ever owning their own home is pushed further and further out of reach," he said.
"In particular, rising house prices disproportionately impact on young people and first time buyers who are already struggling to get on the property ladder.
“At the heart of our housing crisis is the lack of genuinely affordable homes. We need to see a real step change in the supply of affordable housing available for social rent. This would ease wider pressure in our housing system and make it easier for more people to secure an affordable home."