Scottish house prices soar while UK average falls

Scottish house prices soar while UK average falls

0:05 AM, 21st February 2024, About 3 months ago

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Scotland outperformed the rest of the UK in the property market in 2023, with a 4.2% increase in house prices, while the UK average fell by £740, according to one property firm.

DJ Alexander Ltd, Scotland’s largest lettings and estate agency, analysed the monthly house price index and found that the average house price in Scotland went up from £182,742 in January 2023 to £190,341 in December 2023.

The firm also revealed that there were significant variations in price changes across Scotland, with some areas seeing double-digit growth and others experiencing declines.

‘Scottish housing market has remained remarkably resilient’

The firm’s chief executive, David Alexander, said: “The Scottish housing market has remained remarkably resilient over the last few years.

“An increase of £7,599 equates to a 4.2% rise last year at a time when interest rates had risen, utility bills were soaring, and there were concerns over the sluggish performance of the economy.”

He added: “Despite all of these factors almost every part of Scotland recorded an increase in average prices with five areas having a double-digit rise over the twelve months.”

Mr Alexander attributed the largest increases to the popularity of Edinburgh and Glasgow, where people seem to be drawn back to live and work in cities again.

He also suggested that the trend for rural and remote homebuying may be in decline.

The highest house price increase

The figures reveal that the highest house price increase was in East Renfrewshire, where the average house price rose by £28,358, followed by East Lothian, where it increased by £22,318.

Midlothian, East Dunbartonshire, and Edinburgh also saw substantial rises of £16,396, £16,180, and £13,050 respectively.

However, three areas recorded falls in values, with the largest in Dumfries and Galloway, where the average house price dropped by £8,354.

Argyll and Bute and Moray also saw decreases of £6,759 and £540 respectively.

Aberdeen and Aberdeenshire experienced price growth

Mr Alexander also points to Aberdeen and Aberdeenshire which experienced price growth – probably down to the announcement of further developments in the oil and gas sector to help revitalise the economy in the North-East.

He said: “These figures are remarkably positive and indicate a housing market that remains robust and buoyant.

“With interest rates likely to fall, employment remaining high I believe these increases in Scottish house prices are likely to continue in the coming year.”

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