How will Brexit impact upon the Scottish property market? Part 1

Politically and economically it has been a very unusual year. Whatever your views politically, there is no doubt that the current uncertainty is impacting upon the Scottish property market.

First indications, and they can only be first indications, are of a mild reduction in both the number of transactions and those circumstances where multiple prospective purchasers are bidding for the same property.

McVey and Murricane have a unique perspective on the Scottish housing market because of the very high volume of purchases, sales and remortgages transacted by the firm. Even before the referendum, with its resultant uncertainty both from a UK and Scottish standpoint, McVey and Murricane observed clear evidence of structural issues bearing down upon the Scottish property market.

The sources of these problems are a combination of taxation decisions by the Scottish Government, intrusive regulation acting as a drag on the market and severe problems with the supply of properties into the market.

Over the next few weeks, we hope to provide you with an insight into these important issues as well as asking for your opinion and contributions.

DID YOU KNOW? An example of the insight we hope to deliver is the fact that the number of transactions in the Scottish market, after eight years of "recovery" from the financial crash, is still over 35% below its 2007 level. Yet there are more "households" in Scotland. Why has the market failed to respond?

What do we hope to achieve from this endeavour? There are really two driving forces behind this. The first is to explain to our clients what is happening in an area which is of fundamental interest to them. The second is to enable us to make some form of representation to the politicians, organisations and authorities that control the levers of power. A functioning, accessible and, as far as possible, fair property market is essential to the fabric of Society in an open democracy. If that property market is not functioning properly then unintended consequences will follow. You only need to look at London to see an example of a property market which fails to meet the needs of its occupants.