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Scottish Property Market Reaches Four-Year High

Annual property growth has reached a four-year high in Scotland, according to the latest LSL Acadata house price index.

In June, the average house price was £164,105 – up 5.7 per cent when compared to the same month last year. 

This increase in Scotland was greater than the increases in the north of England, the Midlands and Wales, while the rest of England (excluding London) saw a decrease. Encouragingly then, the Scottish property market continues to grow, which is perhaps surprising considering the upcoming independence referendum in September.

Speaking on the matter, Gordon Fowlis, Regional Managing Director of Your Move said: “While the majority of regions across England and Wales are witnessing price falls, the Scottish market is moving the other way.”

It is true that overall, the property market in Scotland continues to recover. Perhaps unsurprisingly, the cities of Edinburgh and Glasgow have driven this trend. However, prices have actually fallen in half of all the local authority areas across Scotland, including Dundee, Fife and East Renfrewshire.

The average house price in the capital, Edinburgh, is £239,659, a 4.2 per cent increase from the previous year, while in Glasgow, average house price us up by 4.5 per cent, to £130,872.

Mr Fowlis added: “In Aberdeenshire, prices climbed to a new high of £228,802 last month.  Overall, average house prices in Scotland are now only 0.9 per cent below their May 2008 peace, and this gap is narrowing. Many households are feeling the weight lift off their shoulders, as consumer confidence in the economic recovery mounts.”

The rising price has been mirrored in the rental market, too. Figures have shown that the cost of renting in the UK is up by 2 per cent in the last year, making the average price for renting a home £753.00 per calendar month.

Again, when it comes to the rental market, the position in Scotland is stronger, with a 1.1 per cent increase in the past 12 months, compared to 1 per cent in England and 0.2 per cent in Wales.

While the Scottish figures are promising, due to the steadier growth in some areas in Scotland, care must be taken to ensure that the benefits of recovery are spread equally throughout the country and not just in the major cities.

Furthermore, with 1.6 million households in the UK already spending more than half of their disposable income on rent or mortgage payments, more affordable housing will have to be invested in to drive down costs for those struggling with their finances, to avoid an increasing number of households ending up in that situation.

Buying or Selling a House in Scotland?

Whether you want to buy a property to live in or rent, or wish to sell a property in Glasgow or somewhere else in Scotland, The Glasgow Law Practice can help you. To get the legal advice you need from our experienced property lawyers based across Glasgow, please complete our online enquiry form.