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Scotland still lags UK

Scottish house prices rising by up to 12.7%

Property for saleHouse prices continue to rise in Scotland with the average home now 4.3% higher in August than the same month last year, though the new tax on homes may have distorted the figures.

Buyers will pay £144,561 which is also 1.3% more than the previous month. The year on year rise still lags the UK average of £218,964, which was 8.4% up on the year and also 1.3% on July. 

Registers of Scotland’s director of commercial services, Kenny Crawford, said: “We still may be seeing some impact from changes in Land and Buildings Transaction Tax that came into effect on 1 April 2016 for additional dwellings, such as second homes and buy-to-let properties.

“These changes are likely to have contributed to the significant increase in volumes seen in March and to the subsequent lower volumes that have followed in April, May and June.”

The top five local authorities in terms of sales volumes were the City of Edinburgh (1,053 sales), Glasgow City (1,003), South Lanarkshire (568) Fife (515), and North Lanarkshire (448). 

The biggest price increase over the last year was in East Renfrewshire where the average price increased by 12.7% to £219,511. The biggest decrease was again in the City of Aberdeen, where prices fell by 8.7% to £175,922.

Mr Crawford added: “In the five months since the House Price Index was first published in June 2016, the City of Aberdeen has shown each month the biggest annual percentage decrease in average price of all of Scotland’s local authority areas. The average price in the City of Aberdeen in August was £175,922, compared to £192,744 in August last year. 

“Overall, average prices in the area have fallen consistently over the last 15 months when comparing monthly average price figures with the figures for the same month in the previous year.”

Across Scotland, all property types showed an increase in average price when compared with the previous year, with semi-detached properties showing the biggest increase of 5.6% to £151,917.

The average price for a property purchased by a former owner occupier was £173,859 – an increase of 4.7% on the previous year. The average price for property purchased by a first time buyer was £116,383 – an increase of 3.9% on the previous year.

The average price for a cash sale was £132,784 – an increase of 3.8% on the previous year, while the average price for property purchased with a mortgage was £150,020 – an increase of 4.6% on the previous year.

 



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