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.”

Join our mailing list:

Leave a comment



Our Next Event

Buy-to-Let Roadshow July 2017

Buy-to-Let Roadshow July 2017

Newcastle - 18/07/2017

Bolton - 19/07/2017

Derby - 20/07/2017

Reading - 21/07/2017

Register now

Latest Comments

jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

view article
SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

view article
Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

view article
AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

view article
Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

view article
Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

view article
Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

view article
paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

view article
CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

view article
warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

view article
Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

view article
Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

view article

Related stories

More articles from Property

Buy-to-Let Roadshow
July 2017

18th-21st July

4 days
7 specialists
4 locations
Free to attend

Click here to register now