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UK House Price Index June 2017

Posted: 16th August 2017

The latest publication of the monthly UK House Price Index (UK HPI) shows that the average price of a property in Scotland in June 2017 was £144,253 – an increase of 2.9 per cent on June in the previous year and an increase of 0.1 per cent when compared to the previous month.

This compares to a UK average of £223,257, which was an increase of 4.9 per cent compared to June in the previous year and an increase of 0.8 per cent when compared to the previous month.

The volume of residential sales in Scotland in April 2017 was 7,908 – an increase of 16.0 per cent on April 2016 but a decrease of 14.2 per cent on the previous month. This compares with annual increases in sales volumes of 1.6 per cent in England, 9.9 per cent in Wales and 5.0 per cent in Northern Ireland (Quarter 2 2017).

Registers of Scotland business development and information director Kenny Crawford said: “Average prices in June continued their upward trend when compared with June 2016. There have been increases in every month since March 2016 when compared with the same month of the previous year.”

“Sales volumes figures for April 2017 showed an increase in Scotland of 16.0% when compared with April 2016. However, volumes in April 2016 were lower than usual, a possible effect of the introduction of changes to the Land and Buildings Transaction Tax that came into effect on 1 April 2016.”

The top five local authorities in terms of sales volumes were the City of Edinburgh (964 sales), Glasgow City (868 sales), Fife (543 sales), South Lanarkshire (511 sales) and North Lanarkshire (411 sales).

Price increases were recorded in 29 out of 32 local authorities in June 2017 compared to the previous year. The biggest price increase was in Glasgow City where the average price increased by 8.5 per cent to £123,609. The biggest decrease was again in the City of Aberdeen, where prices fell by 10.0 per cent to £163,847.

Across Scotland, all property types showed an increase in average price in June 2017 when compared with the same month in the previous year. Flatted properties showed the biggest increase, rising by 4.3 per cent to £104,289.

The average price in June 2017 for property purchased by a first time buyer was £116,315 – an increase of 2.5 per cent compared to the same month in the previous year. The average price for a property purchased by a former owner occupier was £173,088 – an increase of 3.1 per cent on the previous year.

The average price for a cash sale was £136,785 – an increase of 5.1 per cent on the previous year – while the average price for property purchased with a mortgage was £149,192 – an increase of 2.6 per cent on the previous year.

Business Comment

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