Scottish house prices growing faster than in England & Wales

Scottish house prices growing faster than in England & Wales

Your Move’s latest Scotland House Price Index has found that house prices increased in April in Scotland as the average price of a home rose by £3,217.

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).

Price growth is 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.

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.”

Overall, two thirds of Scotland’s 32 local authority areas saw prices rise in the month, and 23 of the 32 have seen prices rise over the year. Of those that didn’t, Na h-Eileanan Siar has seen the biggest falls in the last year, with prices down 4.7%.