The Scottish property market continued to power on at the end of 2017, with the number of transactions at the highest level for almost a decade.
This increased activity helped drive prices upwards. In November, house prices in the country rose 3.5 per cent according to the Your Move/Acadata Scottish House Price Index.
This is an increase on the 3.3 per cent annual growth recorded in October. Month-on-month prices were up by 0.3 per cent.
House prices in Scotland are growing at a significantly faster rate than in many other parts of the UK. As a comparison prices across England and Wales saw annual growth rates of just 0.9 per cent in November.
This increase means that the average house price in Scotland was worth £175,882 in November, up £6,016 on the year before.
Transaction levels remain strong, with sales in the eight months to the end of August up 5.4 per cent on the same period the year before – the highest number of transactions since 2008.
Much of this growth has been driven by strong increases in property prices in Glasgow. Average prices in the city reached a new peak of £157,353 in November, a 9.9 per cent increase over the previous 12 months.
Edinburgh has seen more modest growth over this period, with house prices in the capital rising by just 1 per cent.
House prices on Scotland’s islands saw some of the biggest annual increases. In the Orkneys house prices were up by 13.3 per cent, while properties in the Shetland Islands are up by 10.1 per cent. But Your Move said that low transaction volumes in these areas made pricing volatile.
Other regions with strong price growth and solid transaction levels include Renfrewshire (up 7.9 per cent) Perth & Kinross (up 7.7 per cent) and West Lothian (up 7.5 per cent) with prices in Fife rising by 4.8 per cent.
Just five local authorities saw house prices fall over the year.
Your Move’s managing director in Scotland Christine Campbell says: “The market in Scotland looks strong compared to almost anywhere else in the UK.
“A lot of this is down to the resilience of the market in Glasgow, but the performance has been good across the board. 2017 proved to be a positive year for the market.”
Walker Fraser Steele’s business development manager Alan Penman said that the firm of chartered surveyors was encouraged by these strong transaction volumes. “If this is maintained we can look to 2018 with considerable confidence.”