Scottish house prices are set to boom according to the Bank of Scotland despite the latest Quarterly House Price Index showing only a 7.3% annual rise in Scotland compared to 21% across the rest of the UK.
The average homebuyer in Scotland spends 13% of their gross ann-ual income on mortgage repayments compared to a peak of 27% in 1990, lower than anywhere in the UK.
Martin Ellis, group economist of BoS, said: ‘This favourable affordability should underpin housing demand in Scotland in the coming months. Scotland’s economic health is improving and interest rates are expected to support a further acceleration in house price inflation.’
However, across Scotland the situation is mixed. Inverness saw an annual increase of 39%, and Aberdeen average house prices broke the £100,000 barrier for the first time. Prices in Edinburgh, Glasgow and Aberdeen have increased by 15%-17%.