Independent Scotland home values may drop 17.5%

[LONDON] Home prices in Scotland may fall by about 17.5 per cent, the same amount as during the financial crisis, if the country leaves the UK, Zoopla Property Group Plc said in a report on Monday.

Demand for homes may drop if a "yes" vote in the Sept 18 referendum on Scottish independence prompts businesses to move south of the border, the property website said. The average Scottish home is valued at £177,599 (S$365,000), 2.2 per cent below the August 2008 peak, after rallying for the last two years, Zoopla said.

Polls show that the vote is too close to call, raising the possibility that the UK may break up after three centuries. Mortgages could become harder to obtain and interest rates may rise if voters approve independence, according to Zoopla.