Monthly price rises double in October, as million pound market recovers
- Property prices advance £1,600 (1%) in October, the steepest monthly climb since March
- East Lothian sees biggest boost, as new homes developments push prices up 6.3% since September
- Scottish home sales up 10% year-on-year, with highest October total for eight years
- 30 million pound home sales between August and October, up from 14 in the previous three months
Christine Campbell, Your Move managing director in Scotland, comments: “Movement in the million pound homes market is starting to kindle measures of Scottish property price growth in the run up to Christmas. Average property prices in Scotland have shot up £1,600 in October, twice the £761 rise witnessed in the month of September, as sales of million pound homes start to glow again. This smouldering growth means that we have seen the largest month-on-month rise in property values since the introduction of the Land and Buildings Transaction Tax (LBTT) in April this year, and the fourth biggest monthly jump since the August 2007, at the height of the housing boom. On an annual basis, house price growth is also shining brightly, up by 1.6%, the largest increase in five months.
“The hottest price rises in October have been in East Lothian, where the value of a typical property has climbed £14,000 (6.3%) since September – an increase ignited by new home developments coming onto the market. The seaside town of North Berwick has experienced some of the strongest sales activity over the summer, as buyers hunt for somewhere which has an easy commute to Edinburgh. Crucially, the town has seen three homes sold for over a million pounds and completions on premium new homes, which has helped fuel this considerable increase in local prices.
“Throughout Scotland as a whole, there have been twice as many sales of homes worth more than £1 million between August and October, with 30 sales compared to just 14 in the three month period before. The top of the market now appears to be recovering after being initially scolded by the steeper LBTT. After the introduction of the new levy in April, home sales in this price bracket ground to a halt, but they are now picking up again. The compromise is that higher-end sellers are having to reduce the prices of their homes in order to compensate for the increased LBTT tax rate. In Edinburgh, sales of detached homes in Q3 2015 are up 3.0% year-on-year, but average prices for these properties have dropped 2.0% over the same period.