Average house prices in Scotland have increased by almost £25,000 in the year to September or by 13.2% to £212,832, according to the latest index from Walker Fraser Steele chartered Surveyors.
Scottish house price growth has been the highest of all four UK nations.
However, monthly growth has softened from 2.7% in July to 1.7% in August and then to 1% in September.
Walker Fraser Steele business development manager Alan Penman says: “Five local authority areas in September were responsible for 58% of the positive movement in Scotland’s average house price.
“The five areas concerned, in order of influence, were South Lanarkshire, the City of Edinburgh, Glasgow City, East Dunbartonshire and Highland.
“More generally prices rose in 19 of the 32 Local Authority areas in Scotland.
“The largest increase in average prices, of 6.3%, was in Inverclyde. In second place on the mainland was East Dunbartonshire, with an increase in prices of 5.2%.
“There were plenty of high-value sales in East Dunbartonshire, with a number of detached sales taking place in Bearsden – located approximately six miles to the North West of Glasgow – the most expensive being on the Roman Road, priced at £1.3m.
“This underlines how property at the top-end continues to underpin this growth as people opt for more space and continue to embrace working from home.
“September often provides momentum to the market too as it is not untypical for families to reassess their needs as the new school year gets underway.”
Acadata senior housing analyst John Tindale adds: “It doesn’t come as too much of a surprise to learn that house prices rose in September.
“Looking at the last seventeen years, house prices in Scotland have increased on thirteen occasions in September.
“Estate Agents frequently mention that housing activity picks up towards the end of the school holidays, as families potentially reassess their housing needs at the start of the new school year.
“In addition, this year we also have the added impetus of the lifestyle changes associated with the pandemic and working from home” which has brought about a shift in housing preferences for larger properties, with space for home-working becoming a prime requirement.
“The demand for larger premises has continued throughout September, and for some includes moving to Scotland from London, or from other major cities in the UK and beyond.
“However, the supply of larger homes coming to the market currently remains relatively low, which results in strong competition for those properties that do become available, hence keeping prices high.
“Prices reached a mini-peak in March 2021, immediately prior to the ending of the LBTT tax holiday on 1 April 2021.
“Average prices then started to fall, as buyers of high-value properties reduced in number.
“However, the reduction in high-value sales only continued through April and May, with June, July and August seeing a return of the higher-value transactions.
“In July, August and September 2021, we can see that prices once again regained their earlier momentum seen during the second half of 2020, despite the savings arising from the LBTT tax holiday no longer being available.”
