House prices in Scotland have reached a record high for the seventh time in the last 12 months, with the average house price in February 2022 costing £218,702, according to the Walker Fraser Steele Acadata House Price Index.

The index showed that there was a £16,600 increase compared to figures in February 2021, indicating an 8.2% annual price rise.

The increase is also a 1.1% increase on the 7.1% recorded in December 2021, after house prices continued to rise in January and February this year. 

Of the 32 local authorities in Scotland, 30 saw their average prices rise over the previous 12 months. Clackmannanshire and Aberdeen City were the two areas with price falls compared to the same period last year.

On a monthly basis, prices in February 2022 rose by 1.5%, or around £3,200, which is the highest increase in a month since August 2021.

In February, 21 Local Authority areas in Scotland experienced rising prices in the month, the same number as the previous month.

The largest increase in average prices in February, of 9.3%, occurred in East Renfrewshire. 

The price of all property types, except for flats, increased in East Renfrewshire in February, with the highest increase occurring in detached properties, up from an average £425,000 in January to an average £495,000 one month later.

Alongside the record price rises in Scotland, all nine regions in England and Wales set new record average house price levels in February. However, only Wales has an annual growth rate higher than Scotland at 8.9%.

Walker Fraser Steele regional development director Scott Jack says:  “As a piece of context, in February this year, all the regions in England and Wales established new record average house price levels, but it is fair to say that the Scottish property market has robustly withstood one of the most seismic events in living memory in the past couple of years.”

Jack comments: “The reasons for this strong performance remain constant across the UK. We are still seeing the results of people choosing to change the way in which they work and where they choose to do this. While inflation and interest rates are rising (albeit it at different paces), we still enjoy relatively low borrowing costs. The supply of desirable property remains constrained so there is a lot of competition for the most desirable property.”

“It seems that the pandemic’s impact on our ability to spend, which includes disposable income for socialising and holidays, has meant people have saved for more fundamental things such as a house purchase. Also, the rise in house prices during the period means that existing homeowners have benefitted from an increase in the equity in their homes meaning they can move up the ladder,” he adds.

For private rentals, the Office for National Statistics (ONS) says prices in Scotland have grown by 2.6% in the 12 months to February 2022, which is the highest annual growth rate for Scotland since records began in 2012.

It suggested that the increase in rental growth rates is encouraging some investors to consider purchasing buy-to-let (BTL) properties, adding to the already buoyant demand for homes that currently exists.