Scottish house prices surge by £4,300 in June
Scotland recorded 9,265 home sales in the month, the highest number since July 2014. This was driven by strong growth in Glasgow, where sales activity was 18% higher year-on-year in part due to the popularity of flats in the city.
Christine Campbell, Your Move managing director in Scotland, said: “The calm annual house price change of 1.2% recorded in June 2015 belies tumultuous currents of activity beneath the surface.
“The Scottish housing market has been buffeted around by the changing tide of taxation, but is now back in smoother waters.
“Average property prices surged 2.6% in June, lifting them safely to £169,227 – level with last December – after bobbing around on many ebbs and flows over the last few months.”
Sales of flats climbed by 7% in the second quarter of 2015, with Glasgow and Edinburgh accounting for 45% of all Scottish flat sales.
Campbell added: “Affordability is the biggest steer to Scottish housing market at the moment. At £200,000, the average price of a flat in Edinburgh is more than one and half times as much as the cost of the typical flat in Glasgow (which stands at £120,000).
“As a result, Glasgow has experienced the strongest jump in house purchases overall, with Q2 sales up 18% on 2014, while Edinburgh sales have seen just a 2% upswing over the same period.
“Low interest rates, competitive mortgage deals, and higher average earnings have caused a swell of confidence and buyer demand – particularly in cheaper areas – but a drought of supply will keep the floodgates open to stronger price surges, and along with a future base rate rise, this could wash away options for aspiring buyers.”
Million-pound sales are starting to make a comeback in Scotland, as there were six sales over £1m in June 2015.
Activity dampened down throughout April and May with the looming general election. In Aberdeen sales of detached homes fell 39% between March and April before bouncing back by 25% in June.