Scottish property prices rising at fasted rate for three years

18 June 2018, 06:34

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Property prices in Scotland are rising at their fastest rate in three years - and have soared to record levels, according to new research.

The average price of a home rose to £166,075 during the first quarter of the year - up almost £11,000 on the same time last year - while East Renfrewshire hit the country's highest average cost at £264,840.

Aberdein Considine's study found a lack of new stock and prime property buyers "finally" accepting changes from the Land and Building Transaction Tax was behind the rise.

Jacqueline Law, managing partner at Aberdein Considine, said: "With major concerns being raised about the upper bands, many purchasers were sitting tight to see if the Scottish Government would adjust the levy.

"However, with Finance Secretary Derek Mackay remaining resolute, these buyers appear to have accepted that change is now unlikely and decided to make their move.

"The second factor driving such a sharp rise in property prices is a lack of stock coming to market in certain regions, particularly in and around Glasgow and Edinburgh.

"The average sale price of £264,840 seen in East Renfrewshire during the most recent quarter is the highest we've recorded - but the number of sales in the area has actually fallen.

"This is a pattern we are seeing repeated across many parts of the country where demand is outstripping supply."

The estate and letting agent's Property Monitor report shows a fifth consecutive quarter of growth.

A 7% rise between January and March this year is the biggest jump in prices since Q1 2015.

Dundee, Stirling and Aberdeen all saw prices fall for different reasons.

The Granite City - which once vied with Edinburgh as the Scotland's most prosperous market - today sits at £190,686, just 14.8% above the average and almost £71,000 behind the capital.

But it is an improving picture in the north east, with Aberdeenshire having enjoyed two consecutive quarters of price growth.

At over £215,000, the average cost of a home in the region is still among the highest in Scotland.

The number of transactions fell by 4.9%, with the "Beast from the East" being blamed for bringing many parts of the country to a standstill in late February.