Property prices growth edged up a beginning of the year in Scotland
Property prices in Scotland edged up 0.1% in January and 1.5% annually with growth driven by first time buyers and higher values homes, the latest index shows.
This took the average price of a home to £171,407 and means that in the 12 months to January 2017 prices have risen by £2,600 with the vote to leave the European Union having little effect on the market.
The data from the Your Move/Acadata index also shows that annual growth is 0.5% higher than this time last year but growth is varied across the country.
Half of the 32 local authority areas saw prices rise in January, led by Inverclyde with growth of 5.3% a new peak was reached in Angus where prices climbed 2.4% month on month as buyers switched from flats to detached properties.
In contrast to elsewhere in the UK, higher priced property continues to see the strongest growth in Scotland but annual house price inflation in trails that recorded in England and Wales other than the North East. At 1.5%, it’s less than half the 3.9% across England and Wales as a whole.
In contrast to England and Wales, however, it’s the most expensive property making the running. Eight of the 10 most expensive local authority areas in Scotland, saw increases in prices over the last 12 months. East Renfrewshire, the most expensive area in Scotland, has seen average prices grow 8.9% in the last year to £248,735.
By contrast, more than half the cheapest 10 local authorities have prices lower than they were 12 months ago, with the biggest drop in values over the year in North Ayrshire, down 11.5%. It’s now the cheapest area other than Na h-Eileanan Siar. Even Inverclyde, which saw a 5.3% monthly increase in prices in January experienced a 6.5% drop in prices over the year.
High value sales, including two on the Isle of Eriska at over £1 million, were responsible for the 9.7% increase in annual prices in Argyll and Bute, the biggest increase in the last 12 months. Such sales, though relatively rare, weigh heavily in parts of the market where transaction activity is limited.
According to Christine Campbell, Your Move managing director in Scotland, the primary characteristic of the Scottish market is resilience and the modest increase in January is in line with the annual trend and with no noticeable slowdown since the Brexit vote.
‘Relatively slow house price growth in Scotland is proving a blessing for first time buyers. The early indications are that they’re using the opportunity to get on the ladder, helping to sustain transaction numbers,’ she said.
‘It will be interesting to see how talks of another Scottish referendum play out, and whether or not it has an impact on buyer and seller appetite to make a move now, or indeed, in the future,’ she added.