29 Mar 29.03.2018 Scottish property prices rising at a faster rate than the UK as a whole
29.03.2018 Scottish property prices rising at a faster rate than the UK as a whole
Property prices in Scotland had continued to rise, having shown a year-on-year increase each month since March 2016. The fastest rates of house price growth of all the UK cities were recorded in Glasgow and Edinburgh. Properties in Glasgow and Edinburgh increased in value in the 12 months to November 2017 by 7.9% and 7.6% respectively. In December, Edinburgh, where the cost of an average house rose year-on-year by 10%, to £248,000, was the most expensive area to live in; prices in some Edinburgh areas (Clermiston, Corstorphine, East Craigs and South Gyle) are rising by as much as £5,500 per month.
In December 2017, the average cost of a home in Scotland was £148,783 – an average year-on-year increase of 7.7%. While the average cost of a home in the UK was £226,756 – an average increase of 5.2%.
Richard Donnell, head of research at Hometrack, said: “Over the last 12 months there has been a dramatic south to north shift in the momentum of house price growth, which has culminated in Glasgow registering the fastest rate of house price inflation in the UK.
In Glasgow, Edinburgh and many other large regional cities affordability is less of a barrier than in London and the south east, particularly for first time buyers, and with mortgage rates remaining low this is helping to stimulate demand and increase activity in these markets.”
According to the property consultancy JLL, property prices in Glasgow and Edinburgh are expected to rise by 17% and 22% respectively in the next five years. House prices in Edinburgh are predicted to rise by 4.1 % per year – one of the highest predicted price increases in the UK, while the rents are expected to rise by 3.3 %, which is higher than that forecast for the UK as whole. In Glasgow, a focus on build for sale has changed to one of build to rent. City centre sales are predicted to rise by around 3.2 % per year, while rents are due to increase at an annual rate of 3.2 %.