Prices jump £1,850 in a month
- House prices in Scotland rose 1.1% during August, in only second month of growth since LBTT introduced
- Takes average Scottish house prices back above December 2014 levels as they rally from post-LBTT slump
- Strongest August for home sales in eight years, with activity up 7.5% on an annual basis
- LBTT ensures Scotland sees faster annual sales growth over the summer than anywhere else in Britain
- Semi-detached homes driving price rises and sales growth – with only six million pound sales in August
Christine Campbell, Your Move managing director in Scotland, comments: “The colour is starting to return to the cheeks of the Scottish property market, with house prices brightening by £1,850 (1.1%) in the month of August, and starting to shake off the side effects of April’s Land and Buildings Transaction Tax. The change in tax regime caused a three month decline in house prices between April and June, but now standing at £167,426, the average house price in Scotland has climbed out of its short-term slump, and is once again higher than at the end of last year.
“On an annual basis, house price growth is showing healthier vitals too. The LBTT has slowed high value property sales considerably, which is still muffling the average house price in Scotland. Since the LBTT came into play, the number of million-pound property sales has fallen to an average 4 per month over the last 5 months, down from 12 in 2014. But it’s not just at the very extremes that this has had a dampening effect – the brakes have been applied to all sales above £254,000.
“As a result of the tougher top-end tax rates, the most expensive parts of the country have recorded price falls year-on year, and this is starting to close the price gap between Scotland’s preeminent cities. On an annual basis, house prices in Glasgow have increased by 6.5% to reach £141,871, compared to a 3.4% decrease of property values in Edinburgh since last year. As the area with the highest house price across Scotland, Edinburgh’s price fall encapsulates the current trend of declining house prices in high value areas qualifying for higher rates of transaction tax.