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Scottish house price growth hits big league

12th January 2007 | back to article listings BACK    print this article PRINT

Northern Ireland and London have won the headlines as the twin stars in house price growth over the last 12 months, but new research shows that gains in Scotland have been growing rapidly also.

The average property in Scotland rose in value by 16 per cent in 2006, making it the second best performer behind Northern Ireland, where house price inflation is running at an astronomic 44.1 per cent, four times the UK average, according to Nationwide.

The Northern Irish have benefited from a period of relative political stability over the last year and have piggy-backed on the Republic's raging 'Celtic Tiger' economy where house prices and house building have both steadily increased since the early 90s.

Meanwhile, Scottish prices have been booming at over ten per cent since 2002, making it the 'forgotten man' of strong property investment returns.

Commenting on the research, Fionnuala Earley, Nationwide's group economist, said: "Annual house price growth in Scotland has been in the double digits for most of the last four years.

"Despite this, it is still the second cheapest place in the UK, behind the northern region, with a typical house price of £137,317. This is 80 per cent of the UK average up from 68 per cent three years ago."

Overall, annual house price inflation in the UK ran at 9.3 per cent over the last three months of 2006, meaning that the average property investor gained £40 per day.

If Scotland's strong house price growth is not enough to encourage investors to take a look north of Hadrian's Wall, then its increasing buy-to-let opportunities may in time prove to be the tipping point.

New figures from the International Passenger survey show that tourism in Scotland is booming, meaning that those who are willing to let out there property have a growing demand for rental accommodation.

Some 2,249,000 overseas visitors travelled to Scottish climes from January to September last year, up 14 per cent on the same period last year compared to an eight per cent rise for the rest of the country.

Patricia Ferguson, the Scottish tourism minister, welcomed the figures, saying: "In a very competitive global market, Scotland is increasingly becoming an enticing destination of choice for overseas visitors. I want to work with industry to realise their ambition of 50 per cent growth in the next decade."

Meanwhile, VisitScotland's chief executive Philip Riddle said: "The increase in direct flights to Scotland, more targeted marketing campaigns and of course Scotland's many attractions have all influenced this growth. It is crucial that we continue to work together across the industry to keep this going."

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/3218.html. Alternatively, please see our full press release archive.

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