Market Briefing | Market Outlook for 2017
Now that the full year’s sales data for 2016 has been released we have been able to review last year as a whole, and look forward to see what trends are emerging in the market this year.
Positive growth in the Scottish market in 2016 was constrained by a combination of political and economic events, as well as continuing melancholy in the Aberdeen market. These factors held growth in market turnover back to 1.1% annually.
Land and Building Transaction Tax (LBTT) continues to impact activity at the top end of the market, leading to sustained calls to reconsider the thresholds which are currently restricting activity in many urban family areas.
New build activity improved in 2016 with particular hotspots emerging in new home building, however, overall housing delivery remains well below Government targets and identified need, especially in the cities.
This year is set to be one of market consolidation as the decisions of 2016 continue to cast their shadow over the economy and housing market in 2017.
- Aberdeen’s negative performance constrained otherwise positive trends in the sales market in 2016.
- LBTT has had an impact in suppressing activity at the upper levels of the market.
- Commuter belt development is taking up the slack from under-delivering cities.
- 2017 is set to be a year of change for landlords as new legislation comes into effect.
- We predict a year of consolidation with flat market growth in 2017.