Scottish house prices up 3% since last year despite monthly decrease

homes for saleThe average price of a property in Scotland in September 2017 was £144,924 – an increase of 3.1% on September in the previous year and a decrease of 1.3% when compared to the previous month.

According to the latest publication of the monthly UK House Price Index (UK HPI), the figure compares to a UK average of £226,367, which was an increase of 5.4% on September in the previous year and an increase of 0.4% when compared to the previous month.

The volume of residential sales in Scotland in July 2017 was 8,725 – a decrease of 5.7% on July 2016 and a decrease of 18.3% on the previous month. This compares with annual decreases in sales volumes of 17.1% in England, 11.3% in Wales and 8.6% in Northern Ireland (Quarter 3 – 2017).

Registers of Scotland business development and information director, Kenny Crawford, said: “Average prices in Scotland continued their upward trend in September with an increase of 3.1% when compared to September 2016. Average prices have been steadily increasing each month since March 2016, when compared with the same month of the previous year.

“Residential sales volumes declined in July. The annual decrease of 5.7% on July 2016 in Scotland was the smallest across the UK. The cumulative volume of sales for Scotland for the financial year to date – from April to July 2017 – was 35,484. This is an increase of 10.5% on the equivalent year to date position for July 2016.”

The top five local authorities in terms of July sales volumes were the City of Edinburgh (1,145 sales), Glasgow City (1,018 sales), Fife (607 sales), South Lanarkshire (510 sales) and North Lanarkshire (436 sales).

Average price increases were recorded in 30 out of 32 local authorities in September 2017, when comparing prices with the previous year. The biggest price increase was in the City of Edinburgh, where the average price increased by 9% to £248,702. Decreases were recorded in Aberdeenshire and Aberdeen City, where prices fell by 2% to £192,292 and by 3.5% to £165,275 respectively.

Across Scotland, all property types showed an increase in average price in September 2017 when compared with the same month in the previous year. Flatted properties showed the biggest increase, rising by 4.2% to £105,398. The average price of semi-detached properties showed the smallest increase, 2.1% to £149,616.

The average price in September 2017 for a property purchased by a first time buyer was £117,510 – an increase of 3.1% compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £173,160 – also an increase of 3.1% on the previous year.

The average price for a cash sale was £133,783 – an increase of 2.9% on the previous year – while the average price for property purchased with a mortgage was £150,085 – an increase of 3.2% on the previous year.