House Prices fall for the first time in a year
· Average Scottish house price drops 0.2% in August, as over half the country sees price falls
· But strongest August in 7 years for house sales, despite monthly dip ahead of referendum
· New peak prices reached in East Lothian and Aberdeen City, while values drop in Edinburgh
Commentary on the Scottish Index
Gordon Fowlis, Regional Managing Director of Your Move, comments: “The powerful spell of growth cast over the Scottish property market was broken in August, as house prices fell for first time in a year. At a time when property values across the rest of the UK were continuing to grow, Scotland moved against the grain and average house prices dropped across more than half the country – including Edinburgh, Aberdeenshire, South Lanarkshire, East Dunbartonshire and Fife.
“It’s been an unpredictable and momentous few months in Scotland’s history. In August, uncertainty was still rife over the outcome of the independence referendum, and this hindered the pace of activity in the housing market. Sales in August were 8% below the typical seasonal trend, as sellers shirked the market and buyers postponed purchase decisions until the dust settled. This trend appears more acute at the top tiers of the market, where there were bigger investments at stake, and there was an 11% drop in the number of homes sold across Scotland for over £1 million between July and August. But this didn’t poison the longer-term health of the market, and this was the strongest August for house sales since 2007.”