House prices in Scotland up for eight months in a row, latest index shows
Scottish house prices have increased for an eighth consecutive month, marking the longest growth spell in four years, according to the latest index figures.
Average prices are up 4% in a year, a rise of £6,250 and some 2.4% higher than rate of inflation, the data from the LSL/Acadata report shows. And they were up 0.3% month on month in April.
Sales are also robust, up 24% in the last three months compared to 2013 and this is being driven by first time buyer demand with a new peak being reached in East Renfrewshire with 15% annual growth.
‘The recovery is building in strength. This is more than just numbers on a page. The new stability is translating into a tangible feel good factor for millions of home owners, buoying consumer confidence and anticipation of future price gains,’ said Gordon Fowlis, regional managing director of Your Move, an estate agency that is part of LSL.
He pointed out that the forthcoming Independence referendum in September has not prompted potential home buyers into delaying their purchase decisions. ‘Activity is permeating the Scottish housing market, with overall house sales up 24% over the three months to April 2014 compared to the same time last year. Any uncertainty surrounding the fiscal, taxation or currency implications of an independent Scotland have not dented the confidence of homebuyers,’ he explained.
‘In fact areas such as Stirling have seen sales soar by 52% over the last 12 months. The steep increase in the sale of properties during March and April is 10% above the usual seasonal trend. While transactions may be starting to cool south of the border, there are no indications of a sales slowdown in Scotland,’ he added.
Fowlis also pointed out that, as with the rest of the UK, first time buyers remain a crucial lynchpin in the housing market recovery, driving activity from the bottom up. ‘Last month’s announcement of further investment in the Help to Buy scheme will allow thousands more to climb onto the housing ladder and keep the foot on the pedal,’ he said.
‘House building and revived supply are providing additional impetus for growth. In East Renfrewshire, for example, a wave of luxury housing developments has helped fuel an annual price rise of 15.1%, reaching a new record of £236,463, catapulting this to the top spot as the most expensive area to buy in Scotland,’ he added.
Other areas with strong annual house price growth include Inverclyde up 18%, Perth and Kinross up 11.7%, Aberdeen up 11.6%, East Lothian up 10.2% and the Scottish Borders also up 10.2%.
But some areas have seen prices fall on annual basis, most notably Midlothian with a fall of 11.1% and East Ayrshire down 10.4%.