Scottish Housing Market Stronger Than Rest Of UK

Average house prices have risen by £10,654 in Scotland over the last 12 months, which is almost double the rise rate in England and Wales, according to analysis carried out by estate agents, DJ Alexander Ltd.

The company’s CEO David Alexander, says the 5.9% rise in house prices from £181,273 to £191,927 shows that the Scottish housing market remains buoyant, whilst average prices in England have risen by just 3.1%.

Alexander points out that this: “Occurred at a time when interest rates have fallen at a slower pace than anticipated alongside continuing concerns over the performance of the economy”.
There are, though, some very pronounced regional variations, with East Lothian recording the biggest increase at £27,946 and Aberdeenshire experiencing the biggest fall at £5,690.

And the difference between the cheapest and most expensive places to buy is as high as 161%. In Inverclyde, the average house price is £113,679, but in East Lothian, it is £297,042.

Alexander blames the continued uncertainty over the North Sea oil and gas sector for the price falls in Aberdeenshire, although there was a marginal £625 increase in Aberdeen city.

He says: “North, East and South Ayrshire alongside West Dunbartonshire are all in the bottom ten performing areas, indicating a considerable slowing of the market in these areas. Overall, though, the Scottish housing market remains in remarkably good health with strong average price growth and demand remaining good.”

Although he adds that the twelve areas recording an increase of over £10,000 are a clear sign that demand remains strong from Scotland’s homebuyers.

“Lower mortgage rates later this year and the potential easing of lending criteria will help, but there are a number of exacerbating influences, including employment uncertainty due to rising employer National Insurance costs, and further tax rises anticipated in the Autumn Budget.

“However, for the moment, these figures show a remarkable resilience on the part of Scottish homebuyers.”

And, unlike in the rest of the UK, affordability is less stretched in Scotland, and there has been no Stamp Duty turbulence to contend with.