9:59 AM, 2nd May 2023, About 10 months ago
Scottish house prices have rocketed by 50% over the last decade, according to a leading property firm.
The findings from DJ Alexander reveal that whilst average house prices have risen by more than half, there are enormous variations across Scotland.
For example, in Aberdeen, average house prices have fallen by 16%, while in Glasgow they are up 72%.
The gap between Scotland’s two largest cities and the rest of the country is expanding with both Edinburgh and Glasgow soaring ahead with increases of £129,054 and £69,538 respectively.
And since inflation over the last decade was nearly 30%, in real terms this shows price increases of between 20% for Scotland in general – and a massive 42% in Glasgow.
David Alexander, the chief executive of DJ Alexander, said: “These figures highlight just how much average property prices have increased over the last decade.
“A rise of 50% when inflation is at under 30% means that real-term values have increased substantially at a time when many felt that property prices were fairly stagnant.”
He added: “A lot of this growth has occurred since the start of the pandemic, so we have experienced a period of fairly stable increases over seven years followed by an enormous rise in prices since February 2020.
“These increases are now stabilising and falling back while the long-term price growth remains strong.”
There has been an enormous range of increase in values with detached homes substantially outperforming the rest of the market.
Detached properties substantially outperformed the rest of the market with the average price of a detached home increased by 55% but in Edinburgh and Glasgow, the increase over the last decade was and astonishing 93% and 101%
Flats have not followed this trend and have only increased by an average of 44% – that’s below the 50% for all property – but in both Edinburgh and Glasgow prices are higher with increases of 58% and 63%.
Mr Alexander says: “The real winners are in certain geographic parts of Scotland and among some property types.
“Detached houses are now selling for pretty much double their February 2013 value in Edinburgh and Glasgow, while across the rest of Scotland, their rise has been broadly in line with overall values.”
Mr Alexander warned that many people will not be able to afford a home due to the current house price rises.
He said: “We can see from these numbers that many parts of Scotland are thriving, and that home ownership remains a positive aspiration.
“There may be rising concern that our two largest cities are becoming much more expensive than other parts of the country and prices are accelerating at a rate that may make them quite unaffordable for people to buy if this level of growth continues for another decade.”