HOUSE PRICES DIP AFTER POST-REFERENDUM BOOST
- Scottish property prices fell 0.1% in November, reversing October’s uplift in the wake of the vote
- Slowdown in annual growth to 4.3%, less than half the 10.6% yearly rise across England & Wales
- Sales in November up 6% annually – but quarter of all activity concentrated in Edinburgh and Glasgow
- Prices in Midlothian see highest annual jump at 10%, following 30% leap in local first-time buyer sales
Christine Campbell, Regional Managing Director of Your Move, comments: “The Scottish property market is only just starting to recalibrate after the temporary disruption of the referendum. The immediate ‘feel-good’ factor following the vote led to an artificially upbeat October, but the dust is settling. Average house prices across Scotland dipped 0.1% (or £191) in November, as normal business resumes and familiar market trends reappear. Overall, property values fell in over half of Scotland’s local authority areas in November, and this has touched the brakes somewhat and forced a sharp 1.4% slowdown in the rate of annual house price inflation since October.
“This means annual house price growth in Scotland is currently lagging well below the pace being set across England and Wales. However the underlying upwards momentum is robust. Scottish property values have climbed a healthy 4.3% in the year to November, equal to £6,750 on average. In the last twelve months, fourth-fifths of the nation’s local authorities have witnessed increases in house values. Not only that, but the overwhelming majority of Scotland is experiencing annual property price growth in excess of inflation. The lion’s share of homeowners are enjoying ‘real’ tangible growth in the value of their home beyond the 1% Consumer Price Index rate of inflation. For example, the highest annual leap in values was found in Midlothian, with prices soaring 10.0% - more than double the wider nationwide average. Here, prices have been driven up by a considerable 30% uplift in sales of flats and terraced properties in the past twelve months. This burst of activity has pushed the typical cost of a flat in the area to £120,000, up from £100,000 a year ago."