Scottish house prices up by £2,146 in November
This is the largest increase in a single month since June 2007, when prices rose by 1.7%. But the surge in the average price arises from increasing has not been matched by a similar increase in supply.
Sarah Speirs, RICS Scotland director, the imbalance between the supply and demand for properties is likely to persist over the coming year.
She said: “We expect all areas of the country to see prices increase … this is largely down to the fact that buyer numbers considerably outweigh the amount of homes on the market.
“While the number of new homes being built is now on the rise, it still won’t be anywhere near enough to meet demand, and we expect the problem of insufficient supply of housing stock to be the main driver behind price increases over the next twelve months.”
On an annual basis, average house prices in November 2013 have risen by £3,713, or 2.6%. This marks the largest annual increase since three years ago, when annual prices were rising by 2.9% as the market came out of the recession.
Average house prices are now back to where they were in April 2007, pre the recession, but are still 7% below the peak price of £156,967 reached in May 2008.
Richard Sexton, director of e.surv chartered surveyors, said: “The property market in Scotland is powering on ahead like a freight train.
“Price rises of £2,146 in November reflect the largest increase in a single month, since June 2007 when prices were up by 1.7%.
“This is down to the vast influx of first-time buyers, who have stirred up activity from the lower realms of the housing market – accelerating the rate of recovery.
“Such momentum means there’s cause for renewed optimism in 2014, as the Scottish property market shows it’s making solid progress on all fronts.
“Prices have picked up at a healthy pace across the country and sales are rising swiftly, as mortgage conditions continue to improve.
“Strong demand has been pivotal in improving the outlook for the Scottish housing market as confidence has been growing exponentially in the past six months.
“With lending levels following suit, there are sure signs the Scottish property market is on the fast track to full health. More than three quarters of the country saw price rises in November, showing the recovery has now become nationwide.
Scotland is not alone in seeing house prices rebound during the latter part of 2013. In November 2013 all other regions in Great Britain were also recording a positive movement in house prices over the year, with average price growth in England and Wales standing at 4.8% including Greater London, or 3.4% excluding Greater London.