House price growth in Scotland at strongest for seven months

House price growth in Scotland at strongest for seven months

The latest report on the Scottish housing market has revealed that property price rises accelerated in December, showing the fastest year-on-year increase since May.

The data from Your Move highlighted that average home values bounced back from slipping in summer to reach £170k, after 2.5% rise across 2015.

However, Aberdeen saw the steepest house price drop over 2015 (-6.8%), as demand dips due to falling oil price.

House Price

Index

Monthly Change %

Annual Change %

£170,641

223.5

0.8

2.5

 Christine Campbell, Your Move managing director in Scotland, comments: “The Scottish housing market finished the rollercoaster year on a high, with average house prices growing 2.5% over the course of 2015. This is the fastest year-on-year rise in property prices seen for seven months and the £4,000 jump in the value of a typical property is a well-deserved reward for Scottish homeowners after a volatile year. But the increase over the year to December is still below the 4.4% rise in 2014, as growth was skewed by the introduction of the Land and Buildings Transaction Tax (LBTT). December saw house prices rise 0.8% (£1,309) from the previous month – a rate of growth which hasn’t been beaten since March. The average house price has now broken through the £170,000 barrier again for the first time since May, as the market sets course in the right direction.


2015 was a turbulent ride for some parts of Scotland. Aberdeen experienced the biggest dip in house prices on the mainland last year, with property values in the area falling 6.8% (£15,551). This decline has been driven by the drop in demand for homes in the area, as the tumbling oil price reduces employment and investment into the city. Aberdeen has also felt the negative affect of the introduction of the LBTT, as it’s home to a large number of higher value properties which the tax hit hardest. The city has now slipped to sixth in the house price rankings, down from third at the end of 2014.

While property prices have been held back by higher LBTT rates at the top of the market, the tax has spurred a surge in Scottish home sales. December saw the highest property sales for eight years, up 21% on the same month in 2014. Total sales for the year were 6% higher than 2014, in stark contrast to England & Wales where sales are down 2.6% year-on-year. In Scotland, the type of homes selling swiftest are flats, up 18.4% in the last quarter of 2015 compared to the same period in 2014. The smallest increase was in pricier detached properties, but sales still rose 8.8% over the same time period. As typically the cheapest type of property on the market, flats have benefited most from the switch to LBTT which removed tax paid on purchases under £145,000. With an extra 3% surcharge on second homes coming into force in April, we can expect another jump in sales during the first quarter of 2016, as sellers hurry to beat the tax hike.

The million pound property market has seen the most extreme changes this year. Overall, there has been a 30% annual increase in the sale of high value homes in 2015. Half of these sales came in March, as owners rushed to beat the introduction of the LBTT. This was followed by a short-term drought which saw the average number of million pound sales fall to just 3.5 per month in the four months immediately after the tax rise. However, the top end of the market is firmly in recovery, with the number of £1m sales increasing to an average of 10.5 a month in the last four months of the year, not too far off 2014’s average of 12 sales each month.”

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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