Average property prices in Scotland rose by 3.2% in the year to August 2020, according to Walker Fraser Steele Chartered Surveyors’ Scottish house price index.
Walker Fraser Steele, part of e.surv Chartered Surveyors, found that on a monthly basis house prices rose by 0.5% in August.
Edinburgh and Glasgow alone accounted for nearly 50% of the annual growth in house prices in Scotland.
Despite this growth, transaction numbers remained low, at just 39% of 2019 levels
As of the end of August 2020, the average house price in Scotland was £189,492.
Alan Penman, business development manager at Walker Fraser Steele, said: “In line with the rest of the United Kingdom, Scotland’s house prices have continued to rise in recent months, following the re-opening of the market.
“The increase is linked to tax holiday schemes, the release of pent-up demand following lockdown, and a shift in buyer habits.
“Indeed, the pandemic has not only had an effect on how the market operates in Scotland, but also on buyer preferences.
“Many prospective buyers appear to have changed their priorities and, as working from home has become the norm for so many, larger properties with more outdoor space have become increasingly popular.
“Increasing activity in this sector of the market has led to a corresponding increase in average prices.
“Additionally, following the Stamp Duty Holiday in England, Scotland raised the nil Land and Building Transaction Tax (LBTT) threshold from £145,000 to £250,000, saving buyers in this bracket 2% of their purchase price in tax fees, further incentivising activity in the market.
“The result of this stimulus has been that Scottish properties have risen in value by 2.5% since the housing market reopened for socially distant viewings in May, and 1.1% of this increase comes since the increase of the LBTT threshold.”