Annual house price growth reaches 4.6% in Scotland

Scottish house prices continued their recent growth momentum in June with a further average increase of 0.5%.

As the average price of a house in Scotland increased by an average of £7,779 over the year, to £175,941, annual growth reached 4.6% (from 2.9% the previous month), considerably outperforming England and Wales, where the average was 3.3% for June.

At the same time, sales in Scotland were estimated to have grown by 8%.

The data, from Your Move Scotland House Price Index, reflected the fifth consecutive month of annual growth north of the border, compared to three months of falling prices in England and Wales, up to June.

The figures in Scotland were bolstered by a rise in house prices in its two main largest cities, Edinburgh and Glasgow, which saw growth in June of 2.9% and 2.8%.

Glasgow in particular has seen house prices leap by 10.6% over the past year, while in Edinburgh the increases equate to 4.6%.

The figures in Scotland also included growth in 15 of the 32 Local Authority areas during June.

Christine Campbell, Your Move managing director in Scotland, said:

“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.”

Andrew Turner, chief executive at Commercial Trust, stated:

“It is good news to see growth in Scotland’s house prices, particularly in the major cities, which are traditionally the central focus for the economy and where many people live for work.

“The price increases reflect a healthy environment for would-be investors in property – and of course that includes landlords looking at buy-to-let homes.

“As house prices increase of course, there may be plenty of people who are initially unable to afford to buy a property and will need to look at alternative sources of housing, such as the rental market.

“As demand for rental properties also grows, the market may become increasingly favourable for buy-to-let landlords.”

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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