Average price of property in Scotland up 4.9 per cent year-on-year

The average price of a property in Scotland in May 2018 was £149,004 – an increase of 4.9 per cent on May in the previous year and an increase of 0.1 per cent when compared to the previous month.

The latest publication of the monthly UK House Price Index (UK HPI) (www.ros.gov.uk/property-data/property-statistics/monthly-house-price-index) by the Registers of Scotland also shows that this compares to a UK average of £226,351, which was an increase of 3.0 per cent on May in the previous year and an increase of 0.1 per cent when compared to the previous month.

The volume of residential sales in Scotland in March 2018 was 7,861 – a decrease of 16.1 per cent on March 2017. This compares with annual decreases in sales volumes of 21.8 per cent in England and 13.8 per cent in Wales in March 2018, and 12.4 per cent in Northern Ireland in Quarter 1 - 2018.

Registers of Scotland business development and information director Kenny Crawford said: “Average prices in Scotland continued their upward trend in May with an increase of 4.9 per cent when compared to May 2017. Average prices have been increasing each month since March 2016, when compared with the same month of the previous year.

“Residential sales volumes decreased in March. The annual decrease of 16.1 per cent when compared with March 2017 in Scotland is in the context of large decreases across the rest of the UK. The cumulative volume of sales for Scotland for the financial year to date – from April 2017 to March 2018 – was 100,566. This is an increase of 3.1 per cent on the equivalent year to date position in the previous financial year 2016/17.”

Average price increases were recorded in the vast majority (26) of local authorities in May 2018, when comparing prices with the previous year. The biggest price increases were in West Dunbartonshire, City of Edinburgh and East Renfrewshire, where average prices increased by 12.9 per cent to £104,989, 9.9 per cent to £251,371 and 9.3 per cent to £225,310 respectively. The largest decrease was recorded in Aberdeenshire where prices fell by 3.7 per cent to £190,115. Decreases were also seen in Angus, City of Aberdeen, Inverclyde and Perth & Kinross, with average prices falling by 0.7 per cent, 3.0 per cent, 3.3 per cent and 1.9 per cent respectively.

Increases in sales volumes were recorded in just three local authorities in March 2018, when comparing volumes with the previous year. The biggest increases were in Highland and West Dunbartonshire, where volumes increased by 3.9 per cent to 395 sales and 2.6 per cent to 118 sales respectively. The biggest decreases were in Aberdeenshire and East Ayrshire, where volumes fell by 29.7 per cent to 289 sales and 26.5 per cent to 158 sales respectively.

Across Scotland, all property types showed an increase in average price in May 2018 when compared with the same month in the previous year. Terraced properties showed the biggest increase, rising by 5.6 per cent to £123,277, while flatted properties increased by 4.6 per cent to £108,414, detached properties increased by 4.7 per cent to £255,133, and semi-detached properties increased by 4.8 per cent to £154,921.

The average price in May 2018 for a property purchased by a first time buyer was £121,183 – an increase of 5.0 per cent compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £177,349 – an increase of 4.7 per cent on the previous year.

The average price for a cash sale was £137,790 – an increase of 4.8 per cent on the previous year – while the average price for property purchased with a mortgage was £154,195 – an increase of 4.9 per cent on the previous year.