Scotland Property Price Growth is Strongest since 2007

Residential property prices in Scotland increased by 1.9% in April after stalling in March and are now 3.6% higher than the same month in 2016, overtaking the annual growth in England and Wales.

The latest index also shows that Glasgow and six other regions in Scotland recorded new peak prices with the average for the whole of Scotland reaching £175,087 due to increased demand from first time buyers and a lack of supply.

It is the strongest monthly growth since 2007 if price 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 index report from Your Move Scotland reveals.

The report says that the strong growth in April reflected both fundamental strength and fundamental weakness in the Scottish housing market. On the one hand, the increase seen in April is driven by significant growth across a broad section of the market, rather than being driven solely by a hike at the top.

Indeed, sales of high value properties priced over £750,000 continue to trail last year’s totals as just 17 were sold in April 2017 compared to 27 in the same month last year and it is first time buyers are pushing the Scotland housing market forward, supported by low interest rates and lower deposits required by lenders.

The report also suggests that economic growth and employment opportunities in Scotland are pushing up property prices in many areas.