The average value of a property in Scotland hit £173,862 during February –a rise of 3.3% year-on-year, according to Your Move’s Scotland House Price Index.
In addition, residential property prices north of the border rose significantly, by £2,340 or 1.4%. This took values to a near two-year high.
Rises
This growth was driven by the two largest cities in Scotland, Edinburgh and Glasgow. Property prices in both of these locations increased by 8.4% over the course of the year, largely due to the ongoing supply-demand imbalance in these cities.
Five regions saw a new peak in February, including Stirling, the Shetland Islands and South Lanarkshire. These regions saw yearly increases of 12.2%, 9.4% and 8.2% respectively.
Christine Campbell, Your Move managing director in Scotland, observed: ‘First-time buyers are continuing to drive the market in Scotland, but the window of opportunity opened by interest rate cuts last year may be narrowing. Tight supply coupled with their demand is pushing up prices across the country.’[1]
Property prices in Scotland rise year-on-year
Strong
Alan Penman, business development manager for Walker Fraser Steele, also said: ‘While London remains sluggish, prices in the big beasts of the Scottish housing market, Edinburgh and Glasgow, are growing strongly. That reflects strength in both high value and affordable areas across the country and bodes well for the market as it faces up to the uncertainties following the triggering of Article 50.’[1]
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/house-prices-rise-across-scotland