Scottish house prices rise by £11,458 in 12 months

Average home prices in Scotland have climbed by £11,458 in the past 12 months from £175,976 to £187,434, one firm reveals.

Letting and estate agents DJ Alexander Ltd says its examination of the monthly house price index has shown robust annual growth of 6.5%.

The increase surpasses the 4.9% rise seen in England and Wales during the same timeframe.

Growing price gap

David Alexander, the firm’s chief executive, said: “That 15 areas recorded an increase of over £10,000 is a testament to the level of demand from Scotland’s homebuyers.

“But the gap between the most expensive place to buy and the cheapest is concerning.

“An average difference in price of nearly £200,000 between Edinburgh and Inverclyde is really quite remarkable.”

He added: “Furthermore, there is a clear price gap developing around the capital and its surrounding areas with Edinburgh.

“Midlothian and East Lothian the first, second and fourth most expensive areas to buy in Scotland.”

Scotland’s market dynamics

However, regional disparities across Scotland highlight varied market dynamics, the firm says.

East Renfrewshire topped the list with a steep rise of £24,461, closely followed by Edinburgh, which saw prices jump by £24,071.

Other areas like Stirling, East Lothian and East Dunbartonshire also experienced significant increments of £19,837, £17,172 and £16,311 respectively.

However, not all regions shared this upward trend with Argyll and Bute witnessed a decline of £865, while Dundee saw a minimal drop of £181.

The slowest growth was noted in Aberdeen, Clackmannanshire and Aberdeenshire, with increases of just £1,798, £2,018 and £2,113.

Meanwhile, 15 localities reported average price hikes exceeding £10,000.

Edinburgh stands as the costliest location for homebuyers, with an average price tag of £295,133, contrasting sharply with Inverclyde, the cheapest at £112,849.

Scotland’s prices boom

Mr Alexander said: “As ever some parts of Scotland are booming while others appear to be treading water.

“The Scottish housing market remains in rude good health for the most part with price growth greater than our neighbours south of the Border.

“Whether this continues remains to be seen because this level of annual growth is quite unusual historically.”

He adds: “Lower mortgage rates later this year and the potential easing of lending criteria will help but the exacerbating influence will be the impact that US tariffs have on exports and consequently on Scottish jobs.”