Average house prices in Scotland up more than in England and Wales on annual basis

Average house prices in Scotland increased by 0.5% in June and annual growth has risen from 2.9% to 4.6% compared to the previous month, the latest index figures show.

Prices in Scotland have risen for the fifth month in succession, compared with three months of falling prices in England and Wales where annual growth is 3.3%, according to the index from Your Move.

The growth takes the average price of a home in Scotland to £175,941, up £7,779 over the year and sales are estimated to be up by 8%.

Housing market growth is led by Edinburgh and Glasgow with prices up by 2.9% and 2.8%, respectively in June. Both also show solid annual growth, of 4.6% and 10.6%.

Given the difference in average prices between the two, this shows considerable strength across the market, the report says. Edinburgh’s £256,737 average is second only to East Renfrewshire at £262,203 which is also growing strongly, up 4.6% over the month and 7.5% annually.

Glasgow’s average is lower at £154,666 but neighbouring areas of East Renfrewshire, Renfrewshire and North Lanarkshire saw new peak prices in June.

Across Scotland, 15 of the 32 local authority areas saw prices rise in June, led by East Renfrewshire and on an annual basis growth continues right across Scotland. Only four areas haven’t seen prices rise in the last year.

East Lothian and the Orkney Islands lead the growth, both up 12.2%, but with very different average prices at £225,663 and £147,897 respectively. Midlothian was up 11.1% to £207,430.

The largest fall in prices month on month on the mainland was in Inverclyde, down by 5.6%, and year on year it was West Dunbartonshire down 4.1% to £108,079, although the price of flats in the area has actually risen by about £7,000 over the year, albeit that they remain under £80,000.

‘With strong growth in both its biggest cities, Scotland’s market is on a strong footing with first time buyers contributing to this increase in activity. The increase in transactions is also encouraging, but we need to get more properties onto the market if that’s going to continue,’ said Christine Campbell, Your Move managing director in Scotland.