The impact of Scotland independence could have massive implications on voter’s property value warns the leading Online Estate Agent eMoov.co.uk.
House prices in Scotland have increased quickly in recent months amid continuing strong demand and investment into infrastructure and business across the major cities. However these highs could soon be a thing of the past if the Yes vote is confirmed. Property value is likely to see a sharp decline as there is plenty of uncertainty for the standalone economy.
eMoov.co.uk CEO and property expert Russell Quirk commented:
“General economic uncertainty as a consequence of Scotland going it alone and discord over their currency position when they ditch the pound will hardly make for a robust dynamic. In precarious times, one of the first things to suffer will be jobs. Unemployment means home repossessions and a downward pressure on home values as a consequence. The result for house prices north of the border is potentially catastrophic. ”
“The average house price in Scotland is £160,000. A twenty percent drop in values (which we could easily see) would mean a £32,000 loss on the typical house price. Given that the Scottish market has not yet returned to its peak levels of 2007, we could see mass negative equity and severe hardship for many.”
An independent vote would have a profound effect on property values, not just on Scotland, but across northern England. It is likely that home owners in Northern England that commute into Scotland daily for their job, could face a new road toll at the border. This toll could see their commuting costs rise by up to £100 which would also effect property prices across the North of England.