House prices to increase by four per cent in Scotland during 2015

House prices in Scotland will see a four per cent average increase over the course of next year, according to a new report.

The Royal Institution of Chartered Surveyors (RICS) housing forecast for 2015 said prices have been bolstered by recent changes to Stamp Duty and introduction of Land and Building Transaction Tax, as well as continuing demand and lack of supply of property.

The forecast looks ahead to the next 12 months, across all parts of the housing market, from house prices, sales, rents and repossession levels.

What we need is certainty, clarity and confidence from the Scottish Government, to keep us building homes

Sarah Speirs, director RICS Scotland, said: “The Scottish Housing Commission report, published earlier this year, highlighted the housing supply deficit and the need for revision around planning, development and delivery of housing in Scotland. 

“What we need is certainty, clarity and confidence from the Scottish Government, to keep us building homes.

“The Stamp Duty reform should encourage greater number of transactions to underpin public confidence and we hope this will continue with the introduction of Land and Building Transaction Tax in April 2015.” 

The forecast also states the cost of renting in Scotland will grow by 2.1 per cent in 2015, while mortgage repossessions fall to 20,000.

Across the UK, RICS expects all parts of the country to see modest house price rises during the next 12 months, at an average of three per cent.

Simon Rubinsohn, RICS chief economist, added: “On a UK level 2014 was a significant year for the property market as a more broadly based recovery took hold. Help to Buy funding helped to support the turnaround alongside the more positive trend in the wider economy.”