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House prices in Scotland continue to grow faster than the UK average

Posted: 14th August 2019

Monthly UK House Price Index figures released for June 2019.

Three key figures for June:

The average price of a property in Scotland

The annual price change of a property in Scotland

The monthly price change of a property in Scotland

The latest statistics from the UK House Price Index (HPI) show that the average price of a property in Scotland in June 2019 was £151,891 – an increase of 1.3 per cent on June in the previous year.

Comparing with the previous month, house prices in Scotland rose by 0.7 per cent between May 2019 and June 2019.

The UK average house price was £230,292, which was an increase of 0.9 per cent on June in the previous year and an increase of 0.7 per cent on the previous month.

The volume of residential sales in Scotland in April 2019 was 7,812 – an increase of 6.0 per cent on the original provisional estimate for April 2018. This compares with an increase of 7.9 per cent in England, 5.9 per cent in Wales and a decrease of 1.8 per cent in Northern Ireland (Quarter 2 – 2019).

Commenting on the release, Business Development Director Kenny Crawford said:

Average house prices in Scotland have been growing faster than the UK annual rate since March 2019, and in all but two months since December 2017. The likely cause is the continuing fall of house prices in London, which is reflected in the overall UK figure.

It is worth noting, however, that the average price of a property in London at £466,824 is more than three times that of the average price of a property in Scotland. A detailed, long-term view of the Scottish property market can be found on the Registers of Scotland website. This report is publicly available and includes average price, volume of sales and market value from April 2003.

In Scotland, all property types showed an increase in average prices in June 2019 when compared with the same month in the previous year. Terraced houses showed the biggest increase, rising by 2.0% in the year to June 2019 to £126,953. The smallest increase of all property types was for detached houses, with an increase of 0.1% in the year to June 2019 to £253,901.

Average price increases were recorded in the majority (20) of local authorities, when comparing prices with the previous year.

The largest increase was in Stirling, where the average price increased by 6.4 per cent to £190,076. The largest decrease was recorded in South Ayrshire, where the average price fell by 5.3 per cent to £130,917. Local authority estimates are based on a three month moving average to reduce volatility.

In June 2019, the highest-priced area to purchase a property was City of Edinburgh, where the average price was £263,233. In contrast, the lowest-priced area to purchase a property was East Ayrshire, where the average price was £94,765.

Further information on HPI Scotland by local authority, property type, first time buyers and cash sales can be found in the latest HPI Scotland publication.

As with other indicators in the housing market, which typically fluctuate from month-to-month, it is important not to put too much weight on one month’s set of house price data.

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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