A Yes vote in the upcoming independence referendum could lead to sharp falls in house prices across Scotland, new research shows.

Zoopla, the property search website, said a vote for independence could see average property prices dropping in the short-term.

More than 4 million people are expected to vote on whether or not to leave the United Kingdom this Thursday (September 18th), with the result expected sometime on Friday.

In recent years, house prices in Scotland have grown by 8.3%, or £13,728, with the average home in the country now valued at £177,599.

But the uncertainty presented by a potential Yes vote could have a negative knock-on effect on house prices and mortgages, Zoopla said, as questions over tax, currency and interest rates are blown open.

On the other hand a vote for No would bring certainty to the market and ensure the current economic recovery remains on track, the firm claimed.

‘Detrimental effect’

Zoopla spokesman Lawrence Hall said if the economic impact of a Yes vote is as severe as some analysis has suggested, Scotland going independent would “almost certainly” have a detrimental effect on Scottish house prices, adding it has the potential to create a “market shock” similar to the recession when house prices in Scotland fell 17.5%.

Strutt & Parker’s Robert McCulloch, a partner in the Edinburgh office, said: “The future in the event of a Yes vote is uncertain. We simply do not know what lies ahead and can only speculate.

“However, at the mid to top end of the property market, the sectors in which Strutt & Parker is active, a significant proportion of buyers have jobs related to businesses and industries, such as financial services, who face an uncertain future in the event of a Yes vote. Logically, it follows that the uncertainty which inevitably accompanies a Yes vote will impact on both transaction levels and offer prices.”

2 other potential property issues if Scotland says Yes

- Increased mortgage costs – some experts say lenders could refuse to switch loans to a new currency, keeping them in sterling, leaving homeowners vulnerable to currency market fluctuations.

- Significant market impact – estate agents say mid-market and high-end buyers could be put off moving to Scotland if major employers move their corporate headquarters out of the country.

For more information, contact one of our Scottish offices.