Annual house price growth in Scotland is the highest in UK at 4.8%, more than double the 2.1% growth rate in England and Wales, the latest index shows.
Indeed, the market in Scotland continues to defy the slowdown elsewhere in Britain and prices grew for the seventh month in a row in August with a rise of 0.5%, taking the average price to £176,876.
The Your Move/Acadata index report points out that on an annual basis only the East of England, up 4.5% annually, comes close to growth seen in Scotland while prices in London are down 0.7% on an annualised basis.
Growth in Scotland in August was led by the Borders where prices increased by 5% month on month and 9.7% year on year taking the average price to £187,879, followed by West Dunbartonshire up 4.2% month on month and 5.3% year on year.
At the other end of the scale on the mainland prices in Angus were down 4.7% month on month and in the Shetland Islands down 5.1%, but the report pointed out that low transaction volumes often mean big swings in monthly prices on the islands.
On an annual basis only four areas have seen prices drop, with the biggest fall 2.7% in Inverclyde, which the report says comes after a strong 2016 as a result of sales of new build detached houses.
Edinburgh is still the most expensive area in Scotland with prices up 2.5% month on month and up 8.8% year on year to an average of £262,092. Other areas seeing significant annual growth include North Lanarkshire and East Ayrshire, both up 7.8%, and Midlothian up 7.6%.
According to the report low interest rates and unemployment at a 42 year low in Scotland are supporting a market that doesn’t suffer from the same affordability problems of London and the South East, which both lower the average in England and Wales.
To date, Scotland has also avoided a slowdown in sales. Sales for the first five months of 2017 are 2% higher than the same period last year and up by 6% on 2015.
‘Housing in Scotland continues to shake off the uncertainty we’re seeing elsewhere in the UK economy. Here, low interest rates, high employment and prices that are still affordable are supporting continued robust growth,’ said Christine Campbell, Your Move managing director in Scotland.
According to Alan Penman, business development manager for Walker Fraser Steele, one of Scotland’s oldest firms of chartered surveyors, said the fundamentals are strong in Scotland and that is why it is leading growth in the UK as a whole.
Article published by Propertywire - 20th October 2017