September Surge Leads To House Price Rise

18 November 2015, 06:00

House prices in Scotland have increased after a "turbulent'' summer amid the highest number of sales in September for eight years, according to a new report.

The average home now costs £167,505 after a rise of 1.4% compared to the same month last year.

The increase was more than double August's annual growth of 0.6% as experts said momentum was building again in Scotland's property market.

But growth is yet to hit a third of the speed seen in September 2014, when it was 5.4% compared to the previous year.

The number of housing transactions over the month was 9,464, an increase of 10% and the highest number of sales for September since 2007.

The Your Move/Acadata House Price Index also found 23 local authority areas saw prices go up over the year with nine recording falls - seven of which are in the top areas when ranked by their average prices.

Edinburgh was one of those where prices were lower but with an average cost of £233, 974 it was still the most expensive in the country despite a 0.8% drop compared to last September.

Christine Campbell, Your Move managing director in Scotland, said: "House prices have taken off after a turbulent summer.

"Usually there is a decline in house purchase activity between August and September, as a lagged effect of the summer holidays.

"However, this month's figures go against this trend. Despite other headwinds, this could be down to Scotland's rising employment rate.

"With interest rates unlikely to change until 2017, low borrowing costs and near zero inflation should also help to pull up prices in the future.

"However, prices are still lower in seven of the nine most expensive local authorities as the land and buildings transaction tax is still preventing the top end of the market from taking off.

"There have been fewer high value sales since the introduction of the tax - keeping prices down.''