Scottish house prices up 9.3%

Scottish property prices rose by 9.3% in the year to November, according to Walker Fraser Steele’s Scotland House Price Index.

Month-on-month, Scottish house prices rose by 0.2% in November, with the average price now £213,109.

On a regional basis, prices in Argyll and Bute rose by the greatest margin, up 17.8% annually, while property prices in the Shetland Islands increased by the largest amount month-on-month, up 10.2%.

The data found that 31 of the 32 Scottish local authority areas have seen prices increase over the past 12 months.

Overall, transaction volumes were up by 11% on 2019 levels.

Alan Penman, business development manager at Walker Fraser Steele, said: “The national growth rate in house prices of 9.3% remains exceptionally high.

“The ongoing ‘race for space’ continues to support demand for properties that offer the room to live and work in a pandemic environment.

“Working from home has changed where people want to live and the type of property they want to own.

“The subsequent increase in top-end sales last year has been a result of home movers seeking out properties better suited to their updated needs.

“Additional support was provided through the tax savings from the Land and Buildings Transaction Tax holiday that was available up to the end of March 2021.

“This encouraged the whole market to be more adventurous.

“Even now, competition among purchasers, a lack of suitable stock, and the continued very low interest rates supporting affordable mortgage debt means that there is currently plenty of good headwind to sustain prices.

“So while rates of growth in house prices may be stabilising in Scotland, the housing market in November still saw an increase in the average house price of £484, which is 0.2% higher than in October.

“Sales volumes from May to November 2021 look roughly on a par with, or slightly ahead of, previous years, perhaps suggesting that the market has now returned to its pre-pandemic transaction levels, but in summary it is fair to say Scottish house prices have enjoyed another strong year often outperforming the UK average.”

Written by: Houseladder