Annual price growth slows in Scotland, but still outpaces rest of UK.
01 November 2018

Annual price growth slows in Scotland, but still outpaces rest of UK.

Property price growth has slowed year on year in Scotland with a rise of 3.3% in the 12 months to August 2018, down from 5.5% at the start of the year, the latest index shows.

They reached an average of £180,310 with a new peak in Glasgow and double digit annual growth in Inverclyde and West Dunbartonshire, according to the data from the Your Move index.

But prices fell overall by 0.2% month on month, the fourth consecutive drop in prices since May, but lower than the fall of 0.5% in July and 0.8% in June.

The index report reveals a supply issue with little new stock being put on the market. Indeed, new vendor instructions in Scotland are the lowest in the UK after Yorkshire and the Humber.

Overall annual price growth in Scotland is higher than the 1.7% recorded in England and Wales and 25 of the country’s 32 authorities are still showing annual growth with Edinburgh and Glasgow continuing to perform strongly, up 3.1% and 5.9%.

Prices reached a new peak of £160,435 in Glasgow while in Edinburgh the average price was £267,297.

Renfrewshire and Aberdeenshire both saw prices fall substantially in August, down by 5.2% and 1.9% respectively. On an annual basis, however, both still showed positive growth.

The highest annual growth was 12% in Inverclyde, followed by 10.4% in West Dunbartonshire, 9.6% in East Dunbartonshire, 7.2% in East Lothian and 7.1% in Midlothian.

‘Edinburgh and Glasgow are the foundation of the Scottish property market, and the evidence to date suggests that this foundation is strong. The problem is, however, that most home owners seem in no hurry to put their properties onto the market, and we’re seeing a significant shortage of stock,’ said Christine Campbell, Your Move managing director in Scotland.

‘When they do come to the market, however, they sell fast so demand is still there with Leith, for example, being a real hotspot. With talks of a potential second Scottish referendum this too could lead to even more price uncertainty as people sit tight,’ she added.

According to Alan Penman, business development manager for chartered surveyors Walker Fraser Steele, there is strong interest from buyers across the country.