Scotland’s housing market sees a new average price high despite underlying caution.
- The latest data shows a modest growth in house prices by 0.2%, or £400, in September.
- Sales activity surged in August, marking the highest in two years due to limited housing supply.
- Regional disparities noted, with some areas witnessing slight price declines in September.
- Economic factors like the Bank of England Base Rate cut influence the housing market dynamics.
Scotland’s housing market has hit a record high with the average house price reaching £226,113 in September. Though the market remains cautious, this figure represents a modest monthly increase of 0.2%, equating to £400. This upward trend correlates with a notable increase in sales activity witnessed in August, the most significant in two years, catalysed by a scarcity of new housing supply.
Scott Jack, regional development director at Walker Fraser Steele, reflects on this gradual recovery, noting the ‘fifth peak’ reached this year despite the turbulent economic backdrop. He emphasizes that the ‘data shows this month that average house prices in September grew by a modest £400 (0.2%) compared with August.’ This consistent growth takes the average prices over £226,600 for the first time.
However, not all regions mirrored this upward trend. In fact, 18 out of 32 local authority areas experienced slight declines in prices. The annual rise in house prices stands at 2.0%, yet the broader economic environment continues to instil caution among buyers and sellers, with Jack acknowledging the ‘broader economic concerns’ at play. Aspects such as the Bank of England Base Rate cut offer some promise in terms of affordability, potentially easing payments for homeowners but unlikely to significantly invigorate buyer interest.
Regional variations are evident, with East Lothian and East Renfrewshire emerging as standout areas for price hikes, driven by persistent demand coupled with limited availability of housing. Looking forward, the housing market is expected to feel further pressures originating from budget considerations and changing mortgage prices. This ongoing uncertainty in market confidence suggests a cautious approach will continue to prevail.
Scotland’s housing market demonstrates resilience with record-high prices, yet economic conditions suggest a need for continued vigilance.
