Scottish house prices defy interest rate rises

Despite forecasts of a downturn due to rising interest rates, average house prices in Scotland continuing rising, data reveals.

Estate and letting agents DJ Alexander, show that average house prices rose by 1.57% between June 2022 and May 2023.

House prices in Edinburgh grew by 3.35% with an average price of £334,118 – that’s the second-highest figure ever seen in the city.

Price rises in Aberdeen were more modest at 0.81%, while Glasgow saw price falls of 1.68%. Dundee’s prices fell by 3.59%.

‘House prices in Scotland appear to be holding up’

David Alexander, the firm’s chief executive, said: “We can see that house prices in Scotland appear to be holding up well.

“As interest rates started to rise over the last year average prices began to dip but we have seen a recovery from those falls and now see positive price rises across many geographic areas and differing property types.

“The detached home market remains king at the moment and is the gold standard in buyers’ eyes.

“People want outside space and, while this was a trend which began during the pandemic lockdown it is showing no sign of abating.”

‘How long prices can continue to rise’

Mr Alexander continued: “It is perfectly legitimate to question just how long prices can continue to rise but the appetite for homebuying is not slowing down in most parts of Scotland and, indeed, in places like Edinburgh and East Lothian we appear to be experiencing something of a boom once more.

“You would think it can’t last but central belt areas, and Edinburgh in particular, do attract buyers from across the UK and internationally so many of these people will be able to give strong offers despite wider economic woes.”

He added: “There remains a strong desire to buy in Scotland which is producing a buoyant market.

“Home ownership remains a positive aspiration which many are happy to pay a premium for.

“Whether this continues in the face of rising interest rates remains to be seen but at the moment Scotland appears to be embracing home ownership in a very optimistic way.”

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