Scotland ‘bucking trend’ with new peak average house price
Scotland’s housing market is in a good position to face any challenges that lie ahead, experts said as the average cost of a home hit a new high.
The latest House Price Index by Your Move/Acadata found the average price in Scotland stood at a new peak of £184,569 in October.
Annual price growth that month rose to 5.5% when compared with the same point in 2017, the highest rate since April.
The growth rate was five times the average price growth of 1.1% seen in England and Wales in October.
Alan Penman, of chartered surveyors Walker Fraser Steele, said: “Despite any uncertainty surrounding Brexit, the Scottish market could hardly hope for a better position from which to face whatever challenges the next few months bring.”
The index attributed the rise to a general gradual increase over the last three years, and “a turnaround that has seen a return to monthly increases after falling prices during the summer”.
Edinburgh and Glasgow were described as contributing significantly to the overall figures in Scotland.
In the capital, prices were up around 10% on the same time a year ago to £285,077, while Glasgow witnessed a yearly jump of around 9% to £164,689.
Overall, 26 of Scotland’s 32 local authorities saw prices rise over the year, with East Dunbartonshire, Argyll and Bute, Angus, Clackmannanshire and the Western Isles among those said to be showing “real strength”.
The report stated: “Despite a context of relatively few transactions, five local authority areas in Scotland still saw annual house price growth of over 10% in October.
“For comparison, only one local authority area in England saw price growth of over 10% in the same month.
“Despite the growth, the market is not entirely immune to Brexit uncertainty. While much of the increase in prices is supported by low mortgage rates, good wage growth and high employment, it is also due to short supply.
“Buyer demand is strong, but uncertainty means sellers are in no hurry to put their properties on the market.”
Christine Campbell, Your Move managing director in Scotland, said: “Setting a new peak average price at a time when many parts of the UK are struggling to maintain prices is a significant show of strength from the Scottish market. Scotland continues to defy the pessimists.”