Scottish house price growth outstrips rest of UK

The UK House Price Index released today by the Office for National Statistics (ONS) has revealed that Scotland’s house prices are rising faster than in England.

Scottish house price growth outstrips rest of UK

 

The data reveals that average house prices in Scotland increased at twice the rate of the rest of the UK at 1.4% to £154,000 compared to the 0.5% increase to £249,000 in England.

Wales saw a rise of 3.3% to £166,000 and Northern Ireland, prices rose 4% to £140,000.

Overall, the UK average house prices increased by 0.7% over the year to October 2019 to £233,000, the lowest growth since September 2012.

Paul Denton, chief executive of Scottish Building Society, said: “Scotland property prices are travelling in a different direction from the rest of the UK. House prices have grown faster than the UK average for every month, bar three, since December 2017.

“It is concerning we are seeing a decrease in sales volume. It is clear, that at a time when interest rates are low and there are issues on availability, demand continues to outstrip supply.

“It is important to make it as easy as possible to help more people on the property market, but it is also essential the Government focus on accelerating the number of new-build houses in Scotland to address current shortages.”

Edwina de Klee, partner at Edinburgh-based Garrington Property Finders, added: “Scotland’s property boom is being flattered by the weakness of the market south of the border.

“The average home in Scotland is still rising in value at twice the rate of the average English home, but the momentum is easing off.

“Both nations are seeing the number of transactions fall at a similar rate – 4% in Scotland and 4.1% in England – as Brexit uncertainty leads some would-be buyers and sellers to hold off.

“What will be interesting to see is how last week’s election result plays out in the property markets north and south of the border.

“In England the scale of the Conservatives’ victory has brought a degree of clarity, even if the Brexit cloud has not yet lifted.

“Meanwhile in Scotland the success of the SNP raises the prospect of a second independence referendum, which could act as a brake on price growth in 2020.

“For now though Scotland’s property market is at an inflection point. While spared the Brexit-induced pain of much of England, there is still a sense of both sellers and buyers pausing to take stock.”

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