Scottish house prices at two-year high

Photo: Amateur photography by michel

After a strong February when prices grew 1.1 per cent, Scottish house price growth was essentially flat in March, rising just 0.1 per cent or £157, according to Your Move. Indeed, annual price growth in Scotland now stands at 1.8 per cent, down from 2.9 per cent in February – the largest reduction in growth of all the regions in Great Britain.

Nevertheless, average prices in Scotland are at £173,335, their highest since May 2015, with Edinburgh and Glasgow both recording strong growth. Indeed, growth in Scotland is still faster than in Greater London (1.4 per cent), as well as the North East (0.1 per cent), and equals that of Yorkshire and Humberside.

The most recent transaction figures show sales volumes for the full year in 2016 were 1 per cent lower than in 2015. With an overall shortage of housing stuck, though, continuing demand from buyers is still underpinning prices in the country.

“Neither of the big recent political developments in Scotland – the snap General Election nor the Scottish Parliament’s backing vote for a second independence referendum, in April and March respectively – are reflected in these figures,” comments Your Move’s latest report. “The date for triggering Article 50 and formally beginning the Brexit process was known, but decisions to buy and sell are likely to have been made well before.”

Christine Campbell, Your Move managing director in Scotland, says: “A slowdown in growth doesn’t change the remarkable resilience of the Scottish housing market. Prices are now at their highest since the upset to the market caused by the introduction of the LBTT in 2015.”

Alan Penman, business development manager for Walker Fraser Steele, one of Scotland’s oldest firms of chartered surveyors, adds: “The market looks in strong shape, despite sluggish growth. While a few high value sales continue to distort average prices in a number of areas, the real engine driving steady growth in the Scottish market is the solid performance of property in its two biggest cities: Edinburgh and Glasgow.”

Scottish house prices up across the country

21st April 2017

Scottish house prices are rising across the country this spring, accoridng to new figures from Your Move/Acadata. The country’s housing market saw prices hit new peaks in five areas in February 2017: Stirling, Angus, Shetland Islands, South Lanarkshire and Na h-Eileanan Siar.

Prices rose by an average of 1.4 per cent month-on-month and 3.3 per cent annually, taking the national average value to £173,862. This is the highest figure since the surge recorded in March 2015, as tight supply continues to push up pricess.

Both Edinburgh and Glasgow have seen increases of 8.4 per cent in the past year alone, due to lack of housing supply, partly caused by increased investment from overseas buyers in student housing.

Prices are also up 12.2 per cent annually, after a 6.6 per cent surge in February, in Stirling, 7.2 per cent in Angus, 9.4 per cent in the Shetland
Islands, 8.2 per cent in South Lanarkshire and 17.4 per cent in Na h-Eileanan Siar.

Alan Penman, business development manager for Walker Fraser Steele, one
of Scotland’s oldest firms of chartered surveyors and part of the LSL group
of companies, says: “While London remains sluggish, prices in the big beasts
of the Scottish housing market, Edinburgh and Glasgow, are growing strongly.
That reflects strength in both high value and affordable areas across the country
and bodes well for the market as it faces up to the uncertainties following the
triggering of Article 50.”


Scottish house price growth outpaces all English regions

19th December 2016

Scottish house prices are currently growing faster than house prices in all the regions of England.

House prices in the country increased at their strongest rate since March 2015 in October 2016, according to the latest figures from Your Move/Acadata. Prices rose 1.5 per cent during the month – an increase of nearly £2,500.

On an annual basis, prices are now up 2.9 per cent, against 2.1 per cent in September, with the average property now worth £172,561.

Transactions in the third quarter totalled 26,544, down 3.6 per cent year-on-year but ahead of the same month in the last two years. Indeed, transactions have recovered strongly since their slump following the large number of purchases brought forward ahead of April’s additional 3 per cent Land and Buildings Transaction Tax (LBTT) surcharge on second homes.

Christine Campbell, Your Move managing director in Scotland, says: “Scotland is proving to be a resilient market. With the
recovery of interest in prime property, we’re seeing areas of strong growth across all price points.”

Alan Penman, business development manager for Walker Fraser Steele, one of Scotland’s oldest firms of chartered surveyors, adds: “Very little seems to be able to dent the Scottish market at the moment. So far it’s come through the uncertainty over Brexit relatively unscathed, and now it looks like it’s bouncing back well from the stamp duty changes. It’s been a confident display this year.”


Glasgow prices reach new peak as Scottish real estate remains resilient

16th September 2016

Glasgow house prices have reached a new peak, as Scotland’s real estate market remains resilient in the wake of the UK’s Brexit vote.

The country’s average house price climbed by an average of 3 per cent year-on-year in July 2016, according to the latest Your Move/Acadata house price index, to £169,807. The 0.2 per cent monthly increase continue Scotland’s steady growth since April 2015, with the exception of a spike in prices in March.

This steady growth is despite a slowdown in high value property, following the rise in Land and Buildings Transaction Tax in April 2015. Indeed, Edinburgh, with the highest average property prices in Scotland, has seen the number of properties sold at £500,000 or more in the first half of 2016 fall by nearly a quarter on last year.

In its place, cheaper areas are now leading growth, with Glasgow (where prices are well below the £254,000 threshold for the higher LBTT rate) reached a new peak of £146,965 – up 6.2 per cent year-on-year. East Lothian and Perth & Kinross topped Your Move’s monthly table, with a rise of 7.6 per cent and 6.2 per cent respectively, while East Renfrewshire led annual growth.

Christine Campbell, Your Move managing director in Scotland, says: “We’ll have to wait another month or two to begin to see the real impact of Brexit, but the Scottish market has already well demonstrated its resilience. The long recovery in average prices continues and is increasingly being led by the more affordable areas, such as Glasgow, where growth looks to be robust.”

Scottish house prices see largest growth in 13 months

24th August

Scottish house prices recorded their largest annual rise in over a year this summer.

Property values dipped 0.4 per cent month-on-month, which marks the first fall since February, but house prices increased 4 per cent year-on-year, the largest annual growth rate since May 2015. The average property value is now £170,404, 0.97 per cent higher than the start of 2016.

“While June saw the historic EU referendum vote take place, we’re still waiting for greater clarity on the short term effects this will have on the Scottish housing market,” says the latest index from Your Move and Acadata. “Official data released currently covers the period up to the end of June, so only in the coming months will we be able to see the impact a vote to Brexit will have on both property prices and transaction levels.”

The report, though, highlights the ongoing strength of the market’s underlying fundamentals, with record low mortgage rates, high employment levels, and high demand for property.

Edinburgh property prices enjoy strongest rise since 2013

Prime property prices in Edinburgh rose by the strongest amount since 2013 in the second quarter of 2016.

Figures from Knight Frank show that prices jumped 1.4 per cent in the three months to June 2016, taking annual growth across the city to 2 per cent. Outside of the Scottish capital, prices dipped 0.4 per cent, only the second time prices have fallen on a quarter-on-quarter basis. Prices are now 0.6 down from a year ago.

Price growth was fuelled by rising demand, with sales completed by Knight Frank in Edinburgh up 24 per cent from Q1 2016 and over 40 per cent from Q2 2015. This is despite the looming uncertainty from the UK EU referendum.

Edward Douglas-Home, Head of Edinburgh City Sales, says: “The property market in Edinburgh has had a rollercoaster last few years, with four major votes taking place since 2014 alone, culminating in the recent referendum on the UK’s continued membership of the European Union. In spite of this, the market has been busy during the first half of 2016, especially in the prime central areas of New Town and the West End where good quality houses and flats continue to attract high levels of interest.”

The rise in sales has also occurred despite the introduction of the Land and Buildings Transaction Tax surcharge, although Knight Frank notes that the prime market is beginning to adjust.

Scottish house prices fall for first time in eight months, despite sales rise

20th April 2016

Scottish house prices have fallen for the first time in eight months, according to new figures.

Data from Your Move show that property values fell 1 per cent in February 2016 from the previous month.

“The sudden dip in prices will be a welcome reprieve for those attempting to get their foot on the property ladder, as this is first decline in Scotland’s home values seen in eight months,” comments Christine Campbell, Your Move managing director in Scotland.

The average property price in Scotland is now £168,020, 2.1 per cent down year-on-year.

“This tells us more about the turbulence caused by the introduction of the Land and Building Transaction Tax (LBTT) at the beginning of 2015, than anything happening in the market right now,” adds Campbell.

The dip in price comes despite the strongest February for home sales since 2008, up 19 per cent year-on-year, after a flurry of buy-to-let activity, as buyers raced to beat the 1st April deadline for the new LBTT surcharge of 3 per cent for additional home purchases.

Scottish home sales hit seven-year high

16th September 2015

Scottish home sales have hit a seven-year high this summer, as buyers rushed to capitalise on the lower stamp duty under the new Land and Buildings Transaction Tax.

The LBTT rates, which apply to purchases below £325,000, were credited with spurring sales in April, but other factors have built momentum during the ensuing months, from the general election’s outcome to affordable mortgage rates.

Now, after a sluggish start to 2015, sales in the first seven months are exceeding those in 2014.

Sales jumped 6 per cent in July 2015 from the previous month, fuelled by supply levels of new build housing reaching the highest level since 2010/11.

“Scottish property sales hit a seven-year pinnacle in July, recording the highest number of home purchases during a single month since July 2008,” says Christine Campbell, Your Move managing director in Scotland.

“It’s the middle and lower end of the housing market where the tempo is really quickening. Stirling saw the biggest leap in property sales month-on-month in July, up 49 per cent, and here the most commonly sold properties are flats. Across Scotland overall we’re witnessing fewer top-end home sales in 2015 than in 2014, due to the steeper transaction costs now incurred. The proportion of homes in Scotland sold for more than £325,000 has fallen from 9.2 per cent of all property sales in July 2014, to just 7.8 per cent a year later under the revised taxation system.”

Campbell also notes a lot of activity among first-time buyers, as they feed off the supply of new homes.

“Glasgow has witnessed the biggest rise in new homes built in the past year (at 2,267 units),” she explains, “followed by Aberdeenshire and Edinburgh, helping these areas become the first port of call for many new buyers looking to climb onto the property ladder.”

With housing market activity mostly concentrated at the lower rungs of the property ladder, and a dearth of top-end property purchases, overall Scottish house prices have dropped marginally year-on-year. As of July 2015, average house prices in Scotland are down 0.1 per cent annually, equivalent to falling £176 in twelve months. The average price is now £165,162, 0.4 per cent higher than the previous month.