HOUSE prices are predicted to rise by almost 20 per cent during the next five years, estate agents have claimed.
A new market report produced by Rettie found that property markets in Glasgow and Edinburgh are booming with prices rising by 6 to 9 per cent last year.
Dr John Boyle, the estate agent's Director of Research & Strategy, said that he did not expect that to change in the coming years and that the Scottish property market would weather any political or financial storms reasonably well.
Excess demand for property in the market fuelled house price growth of 4 per cent on average last year, Rettie found.
Demand is spilling out into wider geographical areas around the cities, with house sales in East Lothian growing by 16 per cent, well in excess of the national growth.
In Edinburgh, Scotland's brightest property hotspot, strong demand has seen the rise of highly competitive closing dates more than ten offers being made above the Home Report value on some homes.
At the top end of the market in the capital, private and off-market offers are becoming common as buyers seek to avoid competition.
Dr Boyle said: The housing market in Scotland had a reasonably strong 2017 and the start of 2018 looks like a continuation of this trend. House prices are basically rising because there is much more demand than there is supply.
"This is particularly evident in Edinburgh and Glasgow, where average house prices rose by 6-8 per cent over the last year alone.
"In some core Edinburgh postcodes, there has been double digit rent price inflation. Despite downside economic and political risks going forward, this picture does not look likely to change much over the next few years.
"Our current forecasts suggest house price growth in Scotland of around 19 per cent over the next 5 years."
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