Scottish house prices in boom according to new data

Scottish house prices in boom according to new data
Whilst average house prices continue to rise, it is first time buyers who are driving the market as they continue to take advantage of ongoing low interest rates

The latest data from Your Move has revealed that, during April, the average price of a home in Scotland rose by £3,217 causing seven regions to reach new peak prices.

According to the data, after stalling in March, prices increased 1.9% – the strongest growth since 2007, if spikes in March 2015 and 2016 as a result of changes to the Land and Buildings Transaction Tax are taken out of the equation.

The average house value increased to reach £175,087 with annual house price growth rebounding strongly, rising from 2.2% in March to 3.6% in April, and now outpacing the rate for England and Wales as a whole (3.5% in the year to April).

Your Move says price growth is being driven by strong demand coupled with weak supply, most prominently seen in Glasgow, a popular location for first time buyers, which has experienced the strongest annual growth of any significant market in Scotland over the last year.

The housing market has seen significant growth across a broad section of the market, rather than being driven solely by a hike at the top. In fact, sales of high value properties, those over £750,000, continue to trail last year’s totals: just 17 were sold in April, against 27 in the same month last year.

First time buyers are also pushing the Scotland housing market, supported by low interest rates and lower deposits required by lenders. Recent CML analysis of Scotland’s market shows the number of first time buyers rising by over a fifth in the first quarter of the year from 6,200 in Q1 of 2016 to 7,600 in Q1, 2017.

At the same time, strong demand is meeting a squeeze on supply. The most recent monthly survey from the Royal Institution of Chartered Surveyors shows surveyors’ average housing stock at an all time low. This is increasing competition – and prices – for the relatively few properties that are coming onto the market.

Christine Campbell, Your Move managing director in Scotland, said: “Our figures highlight that whilst average house prices continue to rise, it is first time buyers who are driving the market as they continue to take advantage of ongoing low interest rates and relatively low deposit requirements. They hold the ‘key to the door’ and as such, are influencing local markets which is leading to greater balance in prices amongst Scotland’s major cities.

While the election result may have come as a surprise to some, it is imperative that demand for first time buyer properties is met with increased supply through new builds and that confidence in the market is restored to encourage activity across the board.”

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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