LSL/ACADATA SCOTLAND HOUSE PRICE INDEX

Scottish house prices up £647 since September 2012 

Prices rise by £952 on a monthly basis
House prices in Aberdeen hit record high
Sales in Q3 2013 22% higher than last year

House Price

Index

Monthly Change %

Annual Change %

£144,253

195.6

0.7

0.5

Donald MacLellan, Chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services, comments: “The Scottish housing market is being revitalised: for the first time since January 2011 the annual change in prices has been positive, marking a significant step change. Stable price levels are helping the market recover; prices have risen by £952 in the past month and are £647 higher than a year ago. Sales levels are also following suit, now at their highest level for five years – a dramatic boost that is helping propel the property market upwards.

“The main driver of this increase is down to the phenomenal rise in first-time buyer activity at the lower end of the market. Lenders have eased conditions, banks are more confident and generally the mortgage market is buzzing. First-time buyers have witnessed a plethora of top mortgage deals, greater product choice, and low interest rates are giving people more confidence to buy. The Government’s launch of its own version of the Help to Buy equity loan scheme, has given the market a real helping hand.

“The general economic recovery has restored and renewed consumer confidence, and many would-be movers in Scotland are now more optimistic in their ability to sell their existing home and buy elsewhere. As a result the whole market has become far more fluid. Before the average house price of £97,000 paid by first-time buyers was lower than the average price for the market as a whole and movement at the bottom end caused prices to fall. Now it’s activity from second time buyers and other movers that is placing upward pressure on prices and this will drive the recovery forward. With sales up by 22% over the last three months compared to last year, green shoots are emerging in the property market left, right and centre.

“Before we get swept away with the positive news, it is important to stress that the Scottish property market has a long way to go. For instance, there’s the possibility that interest rates will rise and a concern that higher stamp duty on the most expensive properties could put a brake on activity. All eyes will be on the Scottish Government’s plans to focus on affordable housing across Scotland which is vital if the market is to progress further.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s