Scotland’s housing market outpaces England and Wales despite June dip

Despite a drop in house prices in June, Scotland’s housing market is recovering more quickly than those in England and Wales.

According to Walker Fraser Steele’s house price index, after several strong months, the average house price dropped by 0.7% to £223,923.

Even with the slowdown in June, three local authorities in Scotland reached new market highs.

Prices continue to climb in nine local areas

According to Walker Fraser Steele’s data, while house prices declined in June, they were still up 1.3% compared to last year.

Despite the overall decrease, prices continued to climb in nine local areas, with three hitting record highs ­– South Lanarkshire, Angus and East Ayrshire.

Angus has enjoyed six consecutive months of rising house prices.

Paused for a breath in June

Scott Jack, regional development director at Walker Fraser Steele, said: “After three months of growth and a new record high, Scotland’s house prices paused for breath in June with a slight drop of 0.7% or nearly £1,700 on average. Despite this fall, Scotland’s house prices continue to out-pace those seen in England and Wales.

“On an annual basis, Scotland has shown positive movement in 11 of the last 12 months, again outstripping England and Wales which have yet to record a single month of annualised positive house price movement.

“Whilst the overall picture in June was down, nine local authorities still experienced rising prices in the month, and prices in three local authorities; South Lanarkshire, Angus and East Ayrshire recorded new highs.”

Some areas saw house prices falling

Mr Jack says despite the positive news many areas in Scotland saw house prices falling.

He said: “On the flip side, the remaining 23 local authorities saw a fall in prices in the month, which is a timely reminder that whilst interest rate cuts are now likely in the pipeline, the housing market continues to face headwinds from the current high mortgage rates and continuing cost-of-living pressures.

“Notable local authority price fallers included East Lothian, which fell by 4.7% in June. Coupled with Edinburgh’s rise of 0.9%, saw the capital city re-take the mantle of Scotland’s most expensive local authority.”