Average house prices in Scotland rose by 4.8% in the year to April 2018, driven by a continued drop in buyer activity.
The latest publication of the monthly UK House Price Index (UK HPI) shows that the average price of a property in Scotland in June 2018 was £150,472 – an increase of 4.8 per cent on June in the previous year and an increase of 0.8 per cent when compared to the previous month. This compares to a UK average of £228,384, which was an increase of 3.0 per cent on June in the previous year and an increase of 0.4 per cent when compared to the previous month.
The volume of residential sales in Scotland in April 2018 was 7,371 – a decrease of 9.4 per cent on April 2017. This compares with annual decreases in sales volumes of 19.3 per cent in England and 13.9 per cent in Wales in April 2018, and 13.0 per cent in Northern Ireland in Quarter 2 – 2018.
Registers of Scotland Business Development and Information Director Kenny Crawford said: “Average prices in Scotland continued their upward trend in June with an increase of 4.8 per cent when compared to June 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 April, the start of the new financial year 2018/19. The annual decrease of 9.4 per cent when compared with April 2017 in Scotland is in the context of larger decreases across the rest of the UK.”
Average price increases were recorded in the majority (27) of local authorities in June 2018, when comparing prices with the previous year. The biggest price increases were in West Lothian, Midlothian and City of Edinburgh, where average prices increased by 11.3 per cent to £159,408, 9.2 per cent to £180,807 and 9.2 per cent to £255,361 respectively. The largest decreases were recorded in Aberdeenshire and City of Aberdeen, where average prices fell by 3.7 per cent to £189,200 and 2.8 per cent to £159,507 respectively.
Increases in sales volumes were recorded in just four local authorities in April 2018, when comparing volumes with the previous year. The biggest increases were in East Lothian and Perth & Kinross, where volumes increased by 20.1 per cent to 185 sales and 11.9 per cent to 244 sales respectively. The biggest decreases were in Argyll and Bute, Stirling and Inverclyde, where volumes fell by 33.0 per cent to 124 sales, 23.9 per cent to 102 sales and 23.3 per cent to 89 sales respectively.
Across Scotland, all property types showed an increase in average price in June 2018 when compared with the same month in the previous year. Semi-detached properties showed the biggest increase, rising by 6.0 per cent to £157,588, while terraced properties increased by 5.9 per cent to £125,651, flatted properties increased by 4.5 per cent to £109,571, and detached properties increased by 3.3 per cent to £253,725.
The average price in June 2018 for a property purchased by a first time buyer was £122,657 – 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 £178,631 – an increase of 4.4 per cent on the previous year.
The average price for a cash sale was £138,312 – an increase of 4.4 per cent on the previous year – while the average price for property purchased with a mortgage was £155,883 – an increase of 4.9 per cent on the previous year.