Scottish housing market ends 2024 with modest growth

Scotland’s housing market ended 2024 with a quiet finish, experiencing a modest recovery throughout the year.

Data from chartered surveyors Walker Fraser Steele shows that while prices reached record highs in some areas, overall growth remained subdued.

November saw a slight decline in average prices, dropping £1,400 (-0.6%) from October, leaving the average price at £223,094.

That price is down on October’s figure by 0.6%, and annually, house prices in November rose by only 0.8%.

Scotland’s housing market

The firm’s regional development director, Scott Jack, said: “Scotland’s housing market has seen a gradual recovery in 2024.

“While house prices have reached record highs in some areas, overall growth has been modest.

“Sales activity remained strong, with an estimated 8,800 transactions in November, 10% higher than the previous year.”

House prices are being affected by cost-of-living pressures and higher mortgages rates.

Price increases in November

Only 11 local authorities reported price increases in November, with Angus achieving a new record average price of nearly £199,000.

This marks the highest average house price ever recorded in the area.

Overall, 19 authorities reported higher prices compared to a year ago, although growth has recently slowed.

Sales activity remained robust, with an estimated 8,800 transactions in November, 10% higher than the previous year.

Despite the somewhat lacklustre year for the housing market, it was significantly better than the Scottish Fiscal Commission’s initial forecast of a price decline.

Now, Walker Fraser Steele is predicting that Scotland’s housing market will be stronger this year.

However, it also says that the government’s review of Lands and Building Transfer Tax policy may have implications for activity levels.