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Scotland house price rises driven by market inactivity – Your Move

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  • 16/11/2018
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Scotland house price rises driven by market inactivity – Your Move
Annual house prices in Scotland rose by five per cent in September from a four per cent gain in August, data has shown.

 

On a monthly basis, the average house gained more than £3,400 in value up two per cent, according to the latest Your Move House Price Index for Scotland.

Scotland’s performance is in stark contrast to England and Wales, where prices fell 0.1% in September and annual growth languishes well under inflation at 1.1%.

The changes bring the average Scottish house price to £184,030, up more than £7,000 since the start of the year and from £175,070 last September.

 

Regional overview

Edinburgh and Glasgow account for about a quarter of all housing transactions in Scotland and, given Edinburgh’s position as the highest priced local authority in the country, an even greater contribution to average prices.

In Edinburgh prices rose a massive seven per cent in September to £287,473, up from £269,673 the month before, bringing the annual increase to ten per cent.

Glasgow, meanwhile, has also grown well, up three per cent in the month and matching Edinburgh’s annual growth. The average price at the end of September of £166,094 was a new peak for the city.

It joined Argyll and Bute, up three per cent in the month and twelve per cent annually, in setting a new high-water mark for average prices.

The highest annual increase in the country for the second month in a row was Inverclyde. It is among the cheaper areas in Scotland, with an average price of £138,074, but properties in Kilmacolm can sell for almost double those elsewhere in the area.

 

Creeping house prices

Christine Campbell, Your Move managing director in Scotland, said that whether it is the Brexit deadline or not, there is relatively little stock coming onto market.

She added: “Many potential sellers are deciding to sit tight and according to the Royal Institution of Chartered Surveyors new instructions in Scotland are the lowest in the UK.

“This is unfortunately largely the reason behind creeping house prices, but it is also resulting in low transaction levels. On the properties that are being sold, these are at the very high end and largely focused in Edinburgh.”

Alan Penman, business development manager for Walker Fraser Steele, said: “Scotland is testing the limits of whether a market can be strong while largely inactive. Homeowners are in no rush to put their properties onto the market, and we’re seeing a significant shortage of stock.”

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